order on apr fy 2013-14 and determination of arr and tariff for
TRANSCRIPT
Jammu & Kashmir
State Electricity Regulatory Commission
Order
on
Annual Performance Review for FY 2013-14
and
Determination of ARR and Tariff for FY 2014-15
for
Power Development Department (Distribution),
Govt. of J&K
Srinagar
June 2014
Jammu & Kashmir State Electricity Regulatory Commission
Website: http://www.jkserc.nic.in & Email ID: [email protected], [email protected]
Winter (Nov to April): Ambedkar (Panama) Chowk, Railway Road, Jammu-180006 (J&K)
Ph. Nos.: 0191-2470160, 2470183, Fax: 0191-2479367, 2470163
Summer (May to Oct.): H. No. 101, Sector-A, Bagh-I-Hyder, Hyderpora Chowk (near
fly-over bridge), Srinagar – 190014 (J&K)
Ph. No.: 0194-2434582, Fax: 0194-2431817
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JKSERC Order Page I
Before
Jammu & Kashmir State Electricity Regulatory Commission
Petition No: JKSERC/42 of 2014
In The Matter Of:
Filing of Petition for approval of Annual Performance Review (APR) for FY 2013-14 of the
3-Year Multi Year Tariff (MYT) period from FY 2013-14 to FY 2015-16 and Tariff revision
proposal for FY 2014-15 for Jammu and Kashmir Power Development Department -
Distribution Business.
And
In The Matter Of:
Jammu and Kashmir Power Development Department-Distribution,
Srinagar/Jammu
ORDER
Order No. JKSERC/34 of 2014
(Passed on 24th
June, 2014)
1. This Order relates to Annual Performance Review (APR) for FY 2013-14 and tariff
revision proposal for FY 2014-15 filed by the Jammu & Kashmir Power
Development Department-Distribution (hereinafter referred to as JKPDD-D or the
Petitioner or the utility) before the Jammu & Kashmir State Electricity Regulatory
Commission (hereinafter referred to as JKSERC or the Commission) pertaining to
the first Multi Year Tariff (MYT) control period beginning FY 2013-14 to
FY 2015-16. The petition was filed as per the JKSERC (Multi Year Distribution
Tariff) Regulations, 2012 as amended from time to time and in accordance with the
J&K Electricity Act, 2010.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Order Page II
2. As per sub-Regulation (4) of Regulation 47 of JKSERC (Conduct of Business)
Regulations, 2005 and Sub-Regulation (2) of Regulation 12 of JKSERC (Multi Year
Distribution Tariff) Regulations, 2012, the Petitioner was required to file the
petition for Annual Performance Review (APR) for FY 2013-14 to assess the
performance vis-à-vis the target approved by the Commission at the beginning of
the Control period and Tariff proposal for FY 2014-15 by 30th
November 2013.
3. There was delay in filing of the APR petition by JKPDD-D. The Development
Commissioner (Power) JKPDD filed a Petition No. JKSERC/38 of 2013 before the
Commission on 27th
November 2013 seeking an extension in date of filing of tariff
petition up to 30th
January, 2014 on the grounds of inadequate response to the
tenders floated by the Petitioner for engagement of consultants to assist the Utility
in preparing and filing of the APR/Tariff Petition before the Commission.
4. On the assurance of the Petitioner that they are in the process of engaging a
consultant in response to a fresh tender notice floated by them, the Commission,
vide its Order No. JKSERC/30 of 2013 dated 6th
December 2013 granted extension
of filing the Petition by or before 31st December 2013.
5. The Petitioner failed to submit the Petition for APR for FY 2013-14 and Tariff for
FY 2014-15 by the stipulated revised date as specified by the Commission’s Order
dated 6th
December 2013. The Commission, vide its Letter No. JKSERC/ Secy/ 33/
1294-95 dated 16th
January 2014 again reminded the Petitioner to take necessary
action and file the APR/ Tariff Petition. Thereafter, the Commission issued a final
notice to the Development Commissioner (Power), JKPDD vide its Letter No
JKSERC/Secy/33/1437 dated 6th
February 2014 stating that in case the Utility fails
to submit the Petition, the Commission shall be left with no option but to initiate
suo-moto proceedings as envisaged under the relevant Regulations.
6. The Petitioner ultimately filed the Petition for APR for FY 2013-14 and tariff
revision proposal for FY 2014-15 for its distribution business on 17th
February
2014. On detailed analysis of the Petition, the Commission observed several
information gaps and discrepancies in the Petition for which additional information
was sought from the Petitioner vide Commission’s Letter No. JKSERC/ Secy/ 33/
1508-12 dated 21st February 2014.
7. The Petitioner submitted the revised petition on 28th
February 2014 and the
Commission admitted the petition on the same day after the Petitioner made a
presentation before the Commission. The Commission also imposed a fine of
Rs 0.10 Lakhs on the Utility for delayed submission of the Petitions by invoking
Section 102 of the Act.
8. The Commission vide its letter no. JKSERC/Secy/1565-66 dated 28th
February 2014
directed the Petitioner to publish the gist of the APR petition for the
FY 2013-14 and Tariff proposal for FY 2014-15 as public notice and invite
comments/ objections/suggestions from the stakeholders on the above mentioned
petitions filed.
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9. The approved gist of the APR petition for the FY 2013-14 and the Tariff revision
proposal for FY 2014-15 was published by the Petitioner in several widely read
newspapers on 1st and 2
nd March 2014. The copy of the Petition was also made
available on the websites of the Commission and the Petitioner. The stakeholders
were requested to submit their written comments/ suggestions/ objections latest by
29th
March 2014.
10. The process of holding public proceedings as required under the relevant
Regulations could not move ahead in view of 16th
Lok Sabha elections and
imposition of Model Code of Conduct w.e.f. 5th
March 2014. In fact, the
Commission was prevented to move ahead in this matter vide the Election
Commission of India’s (ECI) communication no. 437/6/MISC/2014-CC & BE/322
dated 17th
February 2014, in which, inter-alia it was mentioned in unambiguous
terms that once Model Code of Conduct is imposed for the forthcoming Lok Sabha
elections, it shall be applicable to the Electricity Regulatory Commissions also.
11. The Central Electricity Regulatory Commission (CERC) and some State Electricity
Regulatory Commissions (SERCs) including JKSERC approached Election
Commission of India (ECI) for relaxation. Ultimately, ECI vide communication no:
437/6/1/2014- CC & BE/ dated 23rd
March 2014 conveyed that the Commission has
no objection in the continuance of the process required for the decision on the
power tariff. However, tariff award shall be made only on the completion of polling
in the relevant state i.e. after the poll date / dates in that State. The JKSERC
immediately on receipt of the clarification notified a time schedule for public
hearings at Jammu and Srinagar on the APR and Tariff Petitions for distribution and
transmission business of the JKPDD for FY 2013-14 and FY 2014-15.
Meeting of the State Advisory Committee
12. The Commission convened a meeting with the Members of the State Advisory
Committee (SAC) on 22nd
April 2014 for the purpose of discussing the APR
Petition for FY 2013-14 and Tariff Revision petition for FY 2014-15 filed by the
JKPDD-D.
13. The representatives from the JKPDD-D made a detailed presentation on the Annual
Performance Review for FY 2013-14 and Tariff Proposal for FY 2014-15.
14. Several points were raised and discussed during the SAC meeting, which have been
noted by the Commission and suggestions made by the members of the Committee
and other points discussed have been considered by the Commission in this Order.
Public Hearings
15. In order to maintain transparency in the tariff setting process, the Commission
involved the stakeholders by initiating a public consultation process to elicit their
views on various aspects of the APR for FY 2013-14 and the Tariff Revision
proposal for FY 2014-15 filed by the Petitioner. Accordingly, Public hearings were
held at Jammu and Srinagar as per the details summarized in following table.
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Table 1: Details of Public Hearings
Place/ city Date Location
Srinagar 24.05.2014 IMPA, Mulana Azad Road
Jammu 29.05.2014 PWD Guest House, Gandhi Nagar
16. The Commission invited some industrial organizations and consumer bodies to take
part in the process of tariff determination and represent the interests of the
consumers. The comments/objections/suggestions received during the hearings have
been duly considered while finalizing this Order.
Implementation of the Order
17. In accordance with the Section 57 of the J&K Electricity Act 2010, the Commission
is allowed a time period of 120 days to complete the process of determination of
tariff. Thus, the tariff determination process should get completed by end of June
2014. As there was no approved tariff for raising the bills on account of energy sales
and recovery of electricity charges from 1st April, 2014 up to the determination and
notification of new tariff order, JKPDD-D vide Petition No. JKSERC/44 of 2014,
prayed to the Commission to extend the date of existing approved tariffs applicable
for FY 2013-14 for first four months of FY 2014-15 for all categories of the
consumers served by JKPDD in the State of Jammu & Kashmir.
18. In view of the above, the Commission vide its Order No. JKSERC/Secy/65/34-35
dated 4th
April 2014 and in exercise of powers conferred under the J&K Electricity
Act, 2010 ordered that the Retail Tariffs for FY 2013-14 approved vide
Commission’s Order No. JKSERC/135 of 2013 dated 25th
April 2013 shall remain
applicable from 1st April 2014 onwards till further orders or up to the notification of
the new tariff order for FY 2014-15.
19. The Commission has accepted the Petition for APR FY 2013-14 and Tariff Revision
proposal for FY 2014-15 of JKPDD-D with modifications and conditions. The
Commission directs that this Order be implemented along with directions given and
conditions mentioned in the detailed Order and schedules attached. It is further
ordered that JKPDD-D is permitted to issue bills to consumers only in accordance
with provisions of this Tariff Order and JKSERC (Supply Code) Regulations, 2011.
20. This Tariff Order shall come into effect from 1st of July 2014 and shall remain valid
up to 31st March 2015, unless amended or modified or extended by an order of this
Commission.
21. JKPDD-D must take immediate steps for implementation and publication of this
Order (covering general description of the tariff amendment and its effects) as per
Regulation 51, Chapter-V of the JKSERC (Conduct of Business) Regulations, 2005.
The publication in newspapers shall include a general description of the tariff
changes and its effect on the various classes of consumers.
Order on APR FY 2013-14 and Determination of
JKSERC
22. The Commission directs that this Order be implemented along with directions
and conditions mentioned in the detailed Order.
23. In exercise of the powers vested in it under the Jammu & Kashmir Electricity Act,
2010 (Act XIII of 2010), the Commission hereby passes this Order today
24th
of June, 2014.
Ordered as above, read with attached detailed reasons, grounds and condit
Determination of ARR and Tariff for JKPDD-D for FY 2014
Order Page
The Commission directs that this Order be implemented along with directions
and conditions mentioned in the detailed Order.
exercise of the powers vested in it under the Jammu & Kashmir Electricity Act,
2010 (Act XIII of 2010), the Commission hereby passes this Order today
Ordered as above, read with attached detailed reasons, grounds and condit
FY 2014-15
Order Page V
The Commission directs that this Order be implemented along with directions given
exercise of the powers vested in it under the Jammu & Kashmir Electricity Act,
2010 (Act XIII of 2010), the Commission hereby passes this Order today i.e. on the
Ordered as above, read with attached detailed reasons, grounds and conditions.
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION ....................................................................................... 4
Jammu & Kashmir State Electricity Regulatory Commission ................................................ 4
Jammu & Kashmir Power Development Department ............................................................. 5
Scope of the Present Order .................................................................................................... 5
Procedural History ................................................................................................................ 6
Meeting of the State Advisory Committee ............................................................................. 7
Public Hearings ..................................................................................................................... 9
CHAPTER 2: SUMMARY OF THE PETITION ............................................................ 11
Metering Plan ...................................................................................................................... 11
Consumers, Connected load and Sales Projections .............................................................. 12
Transmission & Distribution Losses and Energy Requirement ............................................ 14
Energy Availability ............................................................................................................. 15
Aggregate Revenue Requirement ........................................................................................ 16
Details of Tariff Proposal for FY 2014-15 ........................................................................... 17
CHAPTER 3: PUBLIC CONSULTATION PROCESS .................................................. 20
CHAPTER 4: IMPLEMENTATION OF MULTI YEAR TARIFF ............................... 42
CHAPTER 5: ANNUAL PERFORMANCE REVIEW FOR FY 2013-14 ...................... 46
Energy Sales ....................................................................................................................... 46
Losses and Energy Requirement .......................................................................................... 55
Power Purchase Quantum ................................................................................................... 57
Power Purchase Cost ........................................................................................................... 63
Inter-state transmission Charges .......................................................................................... 64
Disallowance of Power Purchase costs ................................................................................ 64
Water Usage Charges .......................................................................................................... 65
Operation & Maintenance (O&M) Expenses ....................................................................... 66
Capitalization and Gross Fixed Assets (GFA) ..................................................................... 71
Depreciation ........................................................................................................................ 73
Interest and Finance Charges ............................................................................................... 74
Return on Equity ................................................................................................................. 76
Non-tariff Income ............................................................................................................... 77
Intra-state transmission charges ........................................................................................... 77
Sharing of aggregate gains/losses ........................................................................................ 77
Aggregate Revenue Requirement (ARR) for FY 2013-14 .................................................... 78
Revenue from Sale of Power at Existing Tariffs .................................................................. 79
Revenue Gap ....................................................................................................................... 80
CHAPTER 6: DETERMINATION OF ARR FOR FY 2014-15 ..................................... 82
Sales Projections ................................................................................................................. 82
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Losses and Energy Requirement .......................................................................................... 85
Power Purchase Quantum ................................................................................................... 87
Power Purchase Cost ........................................................................................................... 95
Operation & Maintenance Expenses .................................................................................. 103
Capital expenditure ........................................................................................................... 104
Capitalization .................................................................................................................... 105
Depreciation ...................................................................................................................... 106
Interest and Finance Charges ............................................................................................. 107
Return on Equity ............................................................................................................... 109
Non-tariff Income ............................................................................................................. 110
Aggregate Revenue Requirement (ARR) for FY 2014-15 .................................................. 110
Revenue from Sale of Power at Existing Tariffs ................................................................ 111
Revenue Gap ..................................................................................................................... 112
CHAPTER 7: TARIFF REVISION FOR FY 2014-15 .................................................. 114
No Tariff hike for FY 2014-15 .......................................................................................... 114
Introduction of KVAh tariff .............................................................................................. 114
Fine for using Incandescent Lamps ................................................................................... 115
Rationalization in flat rate tariff slab of unmetered domestic category ............................... 116
Load limit for LTIS- II consumer category ........................................................................ 117
Revision in miscellaneous charges .................................................................................... 118
CHAPTER 8: DIRECTIVES .......................................................................................... 122
CHAPTER 9: TARIFF SCHEDULE FOR FY 2014-15 ................................................ 132
CHAPTER 10: TERMS AND CONDITIONS OF TARIFF/ DEFINITIONS .............. 149
CHAPTER 11: SCHEDULE OF MISCELLANEOUS CHARGES ............................. 157
ANNEXURES.................................................................................................................. 159
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CHAPTER 1: INTRODUCTION
Jammu & Kashmir State Electricity Regulatory Commission
1.1. The Jammu & Kashmir State Electricity Regulatory Commission (hereinafter
referred to as the Commission) is a statutory body setup under an Act of the State
Legislature to regulate power sector in the State of Jammu &Kashmir.
1.2. Section 71 of the Jammu & Kashmir Electricity Act, 2010 has described the
various functions required to be discharged by the Commission. These functions
have been summarised below:
(a) determine the tariff for generation, supply, transmission and wheeling of
electricity, wholesale, bulk or retail, as the case may be, within the State:
Provided that where open access has been permitted to a category of
consumers under section 36, the State Commission shall determine only the
wheeling charges and surcharge thereon, if any, for the said category of
consumers;
(b) regulate electricity purchase and procurement process of distribution
licensees including the price at which electricity shall be procured from the
generating companies or licensees or from other sources through
agreements for purchase of power for distribution and supply within the
State;
(c) facilitate intra-state transmission and wheeling of electricity;
(d) issue license to persons seeking to act as transmission licensees, distribution
licensees and electricity traders with respect to their operations within the
State;
(e) promote co-generation and generation of electricity from renewable sources
of energy by providing suitable measures for connectivity with the grid and
sale of electricity to any person, and also specify, for purchase of electricity
from such sources, a percentage of the total consumption of electricity in
the area of a distribution licensee;
(f) adjudicate upon the disputes between the licensees, and generating
companies and to refer any dispute for arbitration;
(g) levy fee for the purposes of the Act;
(h) specify State Grid Code consistent with the Grid Code specified under the
Electricity Act, 2003 (Central);
(i) specify or enforce standards with respect to quality, continuity and
reliability of service by licensees;
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(j) fix the trading margin in the intra-State trading of electricity, if considered,
necessary; and
(k) discharge such other functions as may be assigned to it under this Act.
1.3. The Commission shall ensure transparency while exercising its powers and
discharging its functions.
1.4. In discharge of its functions, the Commission shall be guided by the State
Electricity Policy, State Electricity Plan, and Tariff Policy published under the
provisions of the Act.
Jammu & Kashmir Power Development Department
1.5. JKPDD, viz. Power Development Department (PDD), Government of Jammu &
Kashmir is the sole transmission and distribution utility in the State of Jammu
and Kashmir.
1.6. The Government of Jammu & Kashmir (GoJK), vide GO no. 264 PDD of 2012
dated 5th
September 2012, ordered for unbundling of JKPDD and setting up of
one transmission company, two distribution companies (one each for Jammu and
Kashmir divisions) and one trading company with the function of a holding
company. In line with the above order, GoJK has ordered for setting up of the
following companies vide GO no. 285 PDD of 2012 dated 21st September 2012:
(a) Jammu & Kashmir State Power Transmission Company Limited
(b) Jammu & Kashmir State Power Trading Company Limited
(c) Jammu Power Distribution Company Limited
(d) Kashmir Power Distribution Company Limited
1.7. As unbundling was not complete, the Commission vide its Order No.
JKSERC/135 of 2013 dated 25th
April 2013 approved separate ARR for the
Distribution business of JKPDD for the entire MYT Control Period from FY
2013-14 to FY 2015-16. The unbundling of JKPDD-D is still under progress,
thus the JKPDD-D (as a deemed distribution licensee) filed the petition for
approval for Annual Performance Review (APR) of its Distribution business for
FY 2013-14 and tariff revision proposal for FY 2014-15 as per the provisions of
the JKSERC (Multi Year Distribution Tariff) Regulations, 2012 and JKSERC
(Conduct of Business) Regulations, 2005.
Scope of the Present Order
1.8. The ambit of the present Order extends to approval of APR for FY 2013-14 and
determination of ARR and tariff for FY 2014-15 for the distribution business of
JKPDD (hereinafter referred to as JKPDD-D of the Petitioner).
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Procedural History
1.9. As per sub-Regulation (4) of Regulation 47 of JKSERC (Conduct of Business)
Regulations, 2005 and Sub-Regulation (2) of Regulation 12 of JKSERC (Multi
Year Distribution Tariff) Regulations, 2012, the Petitioner was required to file
the petition for Annual Performance Review (APR) for FY 2013-14 to assess the
performance vis-à-vis the target approved by the Commission at the beginning of
the Control period and Tariff proposal for FY 2014-15 by 30th
November 2013.
1.10. There was delay in filing of the APR petition by JKPDD-D. The Development
Commissioner (Power) JKPDD filed a Petition No. JKSERC/38 of 2013 before
the Commission on 27th
November 2013 seeking an extension in date of filing of
tariff petition up to 30th
January, 2014 on the grounds of inadequate response to
the tenders floated by the Petitioner for engagement of consultants to assist the
Utility in preparing and filing of the APR/Tariff Petition before the Commission.
1.11. On the assurance of the Petitioner that they are in the process of engaging a
consultant in response to a fresh tender notice floated by them, the Commission,
vide its Order No. JKSERC/30 of 2013 dated 6th
December 2013 granted
extension of filing the Petition by or before 31st December 2013.
1.12. The Petitioner failed to submit the Petition for APR for FY 2013-14 and Tariff
for FY 2014-15 by the stipulated revised date as specified by the Commission’s
Order dated 6th
December 2013. The Commission, vide its Letter No. JKSERC/
Secy/ 33/ 1294-95 dated 16th
January 2014 again reminded the Petitioner to take
necessary action and file the APR/ Tariff Petition. Thereafter, the Commission
issued a final notice to the Development Commissioner (Power), JKPDD vide its
Letter No JKSERC/Secy/33/1437 dated 6th
February 2014 stating that in case the
Utility fails to submit the Petition, the Commission shall be left with no option
but to initiate suo-moto proceedings as envisaged under the relevant Regulations.
1.13. The Petitioner ultimately filed the Petition for APR for FY 2013-14 and tariff
revision proposal for FY 2014-15 for its distribution business on
17th
February 2014. On detailed analysis of the Petition, the Commission
observed several information gaps and discrepancies in the Petition for which
additional information was sought from the Petitioner vide Commission’s Letter
No. JKSERC/ Secy/ 33/ 1508-12 dated 21st February 2014.
1.14. The Petitioner submitted the revised petition on 28th
February 2014 and the
Commission admitted the petition on the same day after the Petitioner made a
presentation before the Commission. The Commission also imposed a fine of
Rs 0.10 Lakhs on the Utility for delayed submission of the Petitions by invoking
Section 102 of the Act.
1.15. The Commission vide its letter no. JKSERC/Secy/1565-66 dated 28th
February
2014 directed the Petitioner to publish the gist of the APR petition for the
FY 2013-14 and Tariff proposal for FY 2014-15 as public notice and invite
comments/objections/suggestions from the stakeholders on above mentioned
petitions filed.
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1.16. The approved gist of the APR petition for the FY 2013-14 and the Tariff revision
proposal for FY 2014-15 was published by the Petitioner in several widely read
newspapers on 1st and 2
nd March 2014. The copy of the Petition was also made
available on the websites of the Commission and the Petitioner. The stakeholders
were requested to submit their written comments/ suggestions/ objections latest
by 29th
March 2014.
1.17. The process of holding public proceedings as required under the relevant
Regulations could not move ahead in view of 16th
Lok Sabha elections and
imposition of Model Code of Conduct w.e.f. 5th
March 2014. In fact, the
Commission was prevented to move ahead in this matter vide the Election
Commission of India’s (ECI) communication no. 437/6/MISC/2014-CC &
BE/322 dated 17th
February 2014, in which, inter-alia it was mentioned in
unambiguous terms that once Model Code of Conduct is imposed for the
forthcoming Lok Sabha elections, it shall be applicable to the Electricity
Regulatory Commissions also.
1.18. The Central Electricity Regulatory Commission (CERC) and some State
Electricity Regulatory Commissions (SERCs) including JKSERC approached
Election Commission of India (ECI) for relaxation. Ultimately, ECI vide
communication no: 437/6/1/2014- CC & BE/ dated 23rd
March 2014 conveyed
that the Commission has no objection in the continuance of the process required
for the decision on the power tariff. However, tariff award shall be made only on
the completion of polling in the relevant state i.e. after the poll date / dates in that
State. The JKSERC immediately on receipt of the clarification notified a time
schedule for public meetings at Jammu and Srinagar on the APR and Tariff
Petitions for distribution and transmission business of the JKPDD for FY 2013-
14 and FY 2014-15.
Meeting of the State Advisory Committee
1.19. The Commission convened a meeting with the Members of the State Advisory
Committee (SAC) on 22nd
April 2014 for the purpose of discussing the APR
Petition for FY 2013-14 and Tariff Revision petition for FY 2014-15 filed by the
JKPDD-D.
1.20. The representatives from the JKPDD-D made a detailed presentation on
the Annual Performance Review for FY 2013-14 and Tariff Proposal for
FY 2014-15.
1.21. Some of the key points raised and discussed by the Committee are summarized
below:
(a) The proposal for no hike of the tariff for the FY 2014-15 may be considered
by the Commission with the directions to the Utility to concentrate on
adoption of various loss reduction measures like metering besides bringing
in efficiency in billing and revenue collection to reduce AT&C losses.
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(b) The Utility should focus on metering as the top most priority in order to
check wastage of power.
(a) The discrepancy in the numbers shown in the presentation and the numbers
submitted as part of the reply to Objections on the Tariff Petition were
pointed out for rectification.
(b) Adequate headway towards DSM and energy efficiency measures is not
happening. Further, the proposal of the Utility for imposition of penalty for
the use of incandescent lamps was not supported as it would promote
‘Inspector Raj’. Thus, it was suggested that awareness programs and
seminars should be conducted by the JKPDD on promotion of energy
conservation in terms of the provisions of the J&K Energy Conservation
Act 2011 and in line with programs supported by Bureau of Energy
Efficiency (BEE), Government of India.
(c) No Consumer Grievance Redressal Forum (CGRF), Ombudsman and also
Tariff policy exists in the State. Setting up of these institutions and
formulation of tariff policy are mandatory under the Act.
(d) KVAh billing may be considered by the Commission in phased manner
after necessary infrastructure facilities like compliant metering and
capacitors for switching over are in place.
(e) The projection for collection efficiency shown as 100% by the JKPDD was
questioned in view of huge gap between the amount billed and the amount
realized. The Utility was directed to rectify the anomaly so as to have a
correct picture of its functioning. It was suggested that arrears should be
indicated separately in the Petition.
(f) Appropriate load forecasting and network planning studies should be
carried out by the Utility to facilitate prudent planning of the transmission
and distribution network in a phased manner in order of priority in
accordance with the availability of funds.
(g) Utility should make a presentation on the implementation of R-APDRP so
as to apprise the SAC about the background and status of implementation
of this critical program aimed at power reforms and reduction of
distribution losses in 30 important towns of the State.
(h) The services of technical institutions in the State should also be utilized for
training programs and third party meter testing.
(i) The Commission directed that the JKPDD shall arrange an authority letter
from the State Government regarding the approved budgetary provision for
power purchase and the subsidy commitment for FY 2014-15. The JKPDD
has also to comply with RPO as per the Regulations.
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(j) The revision in the miscellaneous charges proposed by the utility is
excessive and the Commission may allow only reasonable hike keeping in
view the increase in inflation.
(k) Rationalization of flat rate categories for domestic un metered category
with load above 1 KW up to 2 KW as proposed by the Utility may be
considered by the Commission.
1.22. Several other points were also raised and discussed during the SAC meeting,
which also have been noted by the Commission and suggestions made by the
members of the Committee on above-mentioned points and other points
discussed have been considered by the Commission in this Order.
Public Hearings
1.23. The Petitioner published a public notice indicating the salient features of its APR
and Tariff Revision petition and inviting objections and suggestions from the
consumers and other stakeholders. The public notice appeared in several widely
circulated newspapers.
1.24. The copies of the petitions were made available for purchase on all working days
for consumers from Utility’s offices in Jammu, Srinagar and Leh. The copy of
Petition was also made available on websites of the Commission and the
Petitioner.
1.25. The public notice advised respondents to submit (in person or by post or by fax)
all copies of their objections written either in English, Hindi or Urdu to the
Commission with a copy to JKPDD-D. The last date for submitting the
comments/ objections was 29th
March, 2014. Respondents were also given the
option to be heard in person during the public hearings conducted by the
Commission.
1.26. The Commission and Petitioner received objections/ comments in writing from
five (5) respondents. The list of stakeholders who responded to the public notice
on APR and tariff petition in writing and those who attended the public hearings
is provided in Annexure 2 and Annexure 3, respectively of this Order.
1.27. The Commission issued notices for conducting public hearings in Jammu and
Srinagar in several newspapers as mentioned below:
Table 2: List of Newspapers where notice for Public Hearing was published
Sl. No. Newspaper Date of Publication
1. State Times 25.04.2014
2. The Kashmir Times 25.04.2014
3. Greater Kashmir 26.04.2014
4. Srinagar Times 26.04.2014
5. Daily Excelsior 27.04.2014
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 10
1.28. The Commission held public hearings in Srinagar on 24th
May 2014 and in
Jammu on 29th
May 2014, to discuss the issues related to the APR petition for FY
2013-14 and Tariff Revision Proposal for FY 2014-15 filed by JKPDD-D for
approval of the Commission. The public hearings enabled the utility to present its
case and to respond to the objections raised by various respondents.
1.29. The issues and concerns voiced by various stakeholders have been carefully
examined by the Commission. The major issues discussed during the public
hearing, the objections raised by the respondents and the observations made by
the Commission, have been summarized in Chapter 3: Public Consultation
Process of this Order.
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JKSERC Page 11
CHAPTER 2: SUMMARY OF THE PETITION
2.1 The JKPDD-D published a gist of the APR and Tariff Petition in several widely
circulated newspapers in the State on 1st and 2
nd March 2014.
2.2 This section contains a summary of the petition for approval of APR for FY
2013-14 and Tariff Revision proposal for FY 2014-15 submitted by JKPDD-D.
Metering Plan
2.3 The Commission in its MYT Order for FY 2013-14 to FY 2015-16 dated 25th
April 2013 provisionally allowed the metering plan for un-metered/ un-registered
consumers as submitted by the Petitioner. The Petitioner in its MYT Petition had
submitted that it will achieve 100% consumer metering by end of the Control
Period i.e. FY 2015-16.
2.4 In order to achieve this objective and put the metering of consumers on fast track,
the JKPDD decided to outsource the job of supply and installation of meters
across the state and floated several tenders to this effect. However, the JKPDD-D
submitted that due to poor response and doubtful tenders received the whole
metering process did not take off as projected during FY 2013-14. The JKPDD-D
further submitted that even though it suffered a setback during FY 2013-14, the
utility is committed to achieve 100% metering by end of FY 2015-16.
2.5 In view of above, the JKPDD-D submitted the revised metering plan in its
Petition for APR for FY 2013-14 and tariff revision for FY 2014-15. The
consumer category-wise proposed metering plan as submitted by the Petitioner is
summarized below:
Table 3: Proposed Metering Plan during FY 2013-14 to FY 2015-16
Consumer category FY 2013-14
(RE)
FY 2014-15
(Proj)
FY 2015-16
(Proj)
Domestic 95,139 3,38,702 5,55,804
Non Domestic/ commercial 14,112 27,374 50,811
Agriculture 373 2,824 4,975
Public street lights 4 64 110
LT Public water Works 161 239 539
Total 1,09,789 3,69,203 6,12,239
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JKSERC Page 12
Consumers, Connected load and Sales Projections
2.6 Based on the revised metering plan, the revised estimate of the category wise
number of consumers, connected load and energy sales for the FY 2013-14. The
projections have been based on the revised estimates of the FY 2013-14 and the
Compounded Annual Growth Rate (CAGR) for consumers, connected load and
sale of energy across the various categories and the projections for FY 2014-15
and FY 2015-16 are summarised in following tables.
Table 4: Revised Number of Consumers for MYT Period (FY 2013-14 to FY 2015-16)
Sl. No. Consumer Category FY 2013-14
(RE)
FY 2014-15
(Proj)
FY 2015-16
(Proj)
1 Domestic
- Metered 705629 1044331 1600135
- Unmetered 687250 501693 0
2 Non Domestic / Commercial
- Metered 119,018 146392 197203
- Unmetered 68,848 45440 0
3 Agriculture/Irrigation.
- Metered 11766 14590 19565
- Unmetered 6675 4406 0
4 State / Central Govt. Departments.
- Metered 10,192 10396 10604
- Unmetered 0 0 0
5 Public Street Lighting
- Metered 107 171 281
- Unmetered 153 101 0
6 LT industrial Supply
- Metered 19950 20150 20311
- Unmetered 0 0 0
7 HT Industrial Supply
- Metered 764 787 814
- Unmetered 0 0 0
8 HT-PIU Industrial Supply
- Metered 13 14 14
- Unmetered 0 0 0
9 LT Public Water Works
- Metered 1194 1433 1927
- Unmetered 644 425 0
10 HT Public Water Works
- Metered 157 163 168
- Unmetered - 0 0
11 General Purpose / Bulk Supply
- Metered 145 149 154
- Unmetered 0 0 0
Grand Total 16,32,505 17,90,641 18,51,175
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Table 5: Revised Connected Load (MW) for MYT Period (FY 2013-14 to FY 2015-16)
Sl. No. Consumer Category FY 2013-14
(RE)
FY 2014-15
(Proj)
FY 2015-16
(Proj)
1 Domestic
- Metered 773 1013 1493
- Unmetered 421 333 0
2 Non Domestic / Commercial
- Metered 197 229 313
- Unmetered 62 53 0
3 Agriculture
- Metered 85 104 144
- Unmetered 48 34 0
4 State / Central Govt. Department
- Metered 188 201 214
- Unmetered 0 0 0
5 Public Street Lighting
- Metered 5 7 14
- Unmetered 6 5 0
6 LT industrial Supply
- Metered 251 259 267
- Unmetered 0 0 0
7 HT Industrial Supply
- Metered 299 338 380
- Unmetered 0 0 0
8 HT-PIU Industrial Supply
- metered 33 38 40
- Unmetered 0 0 0
9 Public Water Works
LT Public Water Works
- Metered 46 59 94
- Unmetered 43 33 0
HT Public Water Works
- Metered 19 21 23
- Unmetered 0 0 0
10 Bulk Supply
Metered 57 60 62
Unmetered 0 0 0
Grand Total 2,534 2,784 3,043
Table 6: Revised Energy Sales (MU) for MYT Period (FY 2013-14 to FY 2015-16)
Sl. No. Consumer Category FY 2013-14
(RE)
FY 2014-15
(Proj)
FY 2015-16
(Proj)
1 Domestic
- Metered 1390 1967 3662
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JKSERC Page 14
Sl. No. Consumer Category FY 2013-14
(RE)
FY 2014-15
(Proj)
FY 2015-16
(Proj)
- Unmetered 1404 1095 0
2 Non Domestic / Commercial
- Metered 305 371 653
- Unmetered 218 176 0
3 Agriculture
- Metered 229 298 399
- Unmetered 89 67 0
4 State / Central Govt. Department
- Metered 477 486 501
- Unmetered 0 0 0
5 Public Street Lighting
- Metered 18 28 45
- Unmetered 21 16 0
6 LT industrial Supply
- Metered 294 305 320
- Unmetered 0 0 0
7 HT Industrial Supply
- Metered 626 679 740
- Unmetered 0 0 0
8 HT-PIU Industrial Supply
- Metered 119 125 130
- Unmetered 0 0 0
9 Public Water Works
LT Public Water Works
- Metered 204 233 473
- Unmetered 191 206 0
HT Public Water Works
- Metered 95 96 101
- Unmetered 0 0 0
10 Bulk Supply
Metered 169 176 186
Unmetered 0 0 0
Grand Total 5,849 6,323 7,210
Transmission & Distribution Losses and Energy Requirement
2.7 JKPDD-D in its APR petition has proposed to reduce the distribution losses
substantially every year during the MYT Control Period. The revised distribution
loss for the FY 2013-14 have been submitted as 49.5% and the petitioner has
proposed to reduce it to 46.1% in FY 2014-15 and 41.0% in FY 2015-16. In
addition to distribution losses, the JKPDD-D has submitted that intra-state
transmission losses will be approx. 4.00% per annum during the MYT Period.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 15
2.8 The table below summarizes the T&D loss trajectory and energy requirement as
submitted by the Petitioner.
Table 7: Projected T&D Loss (%) and Energy Requirement (MU)
Sl. No. Particulars
Revised Projections
FY 2013-14
(RE)
FY 2014-15
(RE)
FY 2015-16
(RE)
1 Energy Sales(MU) 5849 6323 7210
2 Distribution Losses (%) 49.5% 46.1% 41.0%
3 Total Energy required at Dist.
Periphery(MU) 11,587 11,728 12,233
4 Intra-State Transmission losses (%) 4.00% 4.00% 4.00%
5 Total Energy Requirement (MU) at
Transmission Periphery 12,070 12,217 12,743
Energy Availability
2.9 The energy requirement for the State is met from the following sources:
(a) Power Purchase from JKSPDC
(b) Power Purchase from CPSUs (including free power from select stations)
(c) Power Purchase from other sources
(d) Banking and Bilateral purchases
2.10 Based on the actual of the first 9 months of FY 2013-14, total energy available
from different sources has been summarized below. The projection for energy
available for FY 2014-15 & FY 2015-16 has been based on the revised estimates
for FY 2013-14 and as per the share of allocated and unallocated power from
State and Central generating stations is also summarised in following table.
Table 8: Summary of Energy Availability as submitted by JKPDD-D (MU)
Sl. No. Particulars
Revised Projections
FY 2013-14
(RE)
FY 2014-15
(Proj)
FY 2015-16
(Proj)
1 Gross Power purchase from CPSUs (all sources
including short term/banking etc) 10,051 10,203 10,582
2 Less: Inter-state Transmission losses @ 3.6% p.a. -362 -367 -381
3 Net Power purchase from CPSUs (all sources
including short term/banking etc) 9,689 9,836 10,201
4 Power purchase from JKSPDC 2,381 2,381 2,542
5 Sub-total (Energy available at Transmission
periphery) 12,070 12,217 12,743
6 Less: Intra-state Transmission losses @ 4.00% p.a. -483 -489 -510
7 Total Energy Available at Distribution
periphery 11,587 11,728 12,233
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 16
Aggregate Revenue Requirement
2.11 Based on the revised estimates for FY 2013-14 and projections for FY 2014-15
and FY 2015-16, the following table summarizes the review of ARR for FY
2013-14 and revised projections for FY 2014-15 to FY 2015-16 as submitted by
JKPDD-D.
Table 9: Summary of ARR for FY 2013-14 and projections for FY 2014-15 to FY 2015-16 (Rs Cr)
2.12 The average cost of supply (ratio of total expenditure to total energy sale) and
overall average realization at existing tariff rates (ratio of total revenue realized
to total energy sale) for FY 2013-14 (revised) and projections for FY 2014-15
and FY 2015-16 as proposed by JKPDD-D is given in following table.
Table 10: Average Cost of Supply and Average overall Tariff (in Rs/KWh)
Particulars
Revised Projections
FY 2013-14
(RE)
FY 2014-15
(Proj)
FY 2015-16
(Proj)
Average Cost of Supply 8.62 8.38 7.81
Average Realisation Rate 3.04 3.00 2.95
Gap 5.58 5.38 4.86
S. No Consumer Category
Revised Projections
FY 2013-14
(RE)
FY 2014-15
(Proj)
FY 2015-16
(Proj)
A. Aggregate Revenue Requirement
1 Power Purchase Cost 3873.79 4011.43 4227.99
2 Water Usage Charges(JKSPDC + NHPC) 495.65 505.65 505.65
3 Intra-state transmission charges 105.33 128.11 148.18
4 O&M Expenses 506.08 556.24 613.47
5 Interest on Loans 16.14 18.16 21.73
6 Depreciation 6.62 40.28 70.08
7 Interest on Working Capital 53.60 58.97 64.91
8 Gross ARR 5057.21 5318.77 5652.01
9 Add: Return on Equity - - -
10 Less: Non-tariff income 14.09 14.80 15.54
Net ARR (A) 5043.12 5303.97 5636.47
B. Revenue assessed @ existing tariff 1777.41 1900.01 2129.85
C. Revenue Gap @ Existing Tariff (A-B) 3265.71 3403.96 3506.62
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JKSERC Page 17
Details of Tariff Proposal for FY 2014-15
No tariff hike for FY 2014-15
2.13 JKPDD-D in its petition for APR for FY 2013-14 and tariff revision proposal for
FY 2014-15 has not proposed any tariff hike for FY 2014-15. The JKPDD-D
further proposed to retain the Tariff approved by the Commission for
FY 2013-14 in the Multi Year Tariff order dated 25th
April 2013 for various
consumer categories served by JKPDD in the State of Jammu and Kashmir. In
the interim, JKPDD-D submitted that it shall concentrate on consumer metering,
enforcement and loss containment during the period.
Rationalization of Slab for un-metered domestic consumer category
2.14 The JKPDD-D submitted that a large number of consumers are reluctant to revise
their agreements in view of a steep hike from 1KW to 2 KW approved by the
Hon’ble Commission in FY 2013-14. Accordingly, JKPDD-D proposed
following modification in (above 1 KW- upto 2 KW) flat rate tariff slab of
unmetered domestic category.
Table 11: Flat Rate Tariff slab for Unmetered domestic category
Flat Rate Tariff Slab
for Unmetered
Domestic category
Approved by JKSERC
FY 2013-14
Proposed by JKPDD for
FY 2014-15
Above 1KW- Upto 2 kW Rs. 1145 per month
Rs. 1145 per month (in steps of
Rs. 140 for every additional ¼
kW or part thereof above 1 kW)
Introduction of KVAh tariff
2.15 The JKPDD-D has proposed to introduce KVAh Tariff for connected loads
above 20 KW in the following consumer categories for better management of
reactive power at all voltage levels with an aim to encourage customers to initiate
the steps to improve their power factor:
1) Non Domestic/ Commercial
2) Agriculture
3) State / Central Government
4) LT Industrial Power Supply
5) LT Water Works
2.16 The KWh and KVAh tariffs are currently proposed to be introduced in energy
charges only and are proposed to be kept at par with each other so that at unity
power factor there is no disparity in the charges paid by the consumers in the
same category for same consumption.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 18
Demand Side Management (DSM) - Fine for using Incandescent Lamps
2.17 In exercise of the powers conferred by section 16 of J&K Energy Conservation
Act, 2011, the Government of Jammu & Kashmir vide Govt. Order No. 34 PDD
of 2013 dated 12th
December 2013 has made mandatory use of Compact
Fluorescent Lamps (CFLs) and has banned the use of Incandescent Lamps in all
new buildings constructed in Government Sector/ Government Institutions/
Public Sector Units/ Autonomous bodies/ Commercial Establishments for
efficient use of energy and its conservation.
2.18 In light of the order the JKPDD-D proposes on spot imposition of fine in case
Incandescent Lamps are found in use at places mentioned in the order. The fine
proposed is as under:
a. Rs 500 for Lamps upto 200W
b. Rs 1000 for Lamps above 200W
Revision in miscellaneous charges
2.19 The Petitioner has submitted that in spite of the fact that there has been a steep
hike in the cost of materials/ labour and services, the miscellaneous charges have
not been revised for many years. The Petitioner submitted a proposal to revise the
Miscellaneous Charges as per the following table:
Table 12: Proposed Schedule of Miscellaneous Charges
Sl. No Particulars Existing
Charges
Proposed
Charges
1 For single phase and three phase connection upto 5
kW
1.a Changing Meter Board in same premises. Rs 60.00 Rs 300.00
1.b Changing Meter at Consumers request in same premises. Rs 60.00 Rs 300.00
1.c Resealing PDDs cut-out in Consumers premises. Rs 20.00 Rs 200.00
2. Re –sealing of Meters, Maximum Demand Indicators
in Consumers premises
2.a Single Phase LT Connection. Rs 50.00 Rs 200.00
2.b Three phase LT Connection. Rs 70.00 Rs 400.00
2.c HT Connection Rs 700.00 Rs 1500.00
3. Meter Testing charge at Consumers request
3.a Single phase LT Meter. Rs 50.00 Rs 250.00
3.b Three phase 4W/3W Meter without CT. Rs 85.00 Rs 350.00
3.c Three phase 4W/3W Meter with CT Rs 300.00 Rs 1000.00
3.d LT CT Meter Rs 120.00 Rs 1000.00
3.e HT Meter along with metering equipment (CT/PT). Rs 1200.00 Rs 4000.00
4. Special meter reading
4.a LT Connection Rs 25.00 Rs 500.00
4.b HT Connection Rs 220.00 Rs 500.00
5. Replacement of burnt Meter (if burnt due to
Consumers fault)
Cost of
Meter+15%
supervision
Cost of
Meter+15%
supervision
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JKSERC Page 19
Sl. No Particulars Existing
Charges
Proposed
Charges
charges charges
6. Fuse Off call charges-Replacement
6.a PDD’s cut out fuse Rs 20.00 Rs 200.00
6.b LT Consumers fuse Rs 20.00 Rs 200.00
7. Replacement of missing Meter card Rs 15.00/card Rs 500/card
8. Replacement of broken glass of Meter Rs 35.00/glass Rs 500/glass
9. Reconnection/disconnection charges
9.a LT Consumers Rs 25.00 Rs 300.00
9.b HT Consumers Rs 170.00 Rs 1000.00
10. Rechecking of installation on request of Consumer
10.a Single phase Rs 75.00 Rs 500.00
10.b Three phase Rs 250.00 Rs 500.00
11. Re-rating of equipment Rs.
120/equipment
Rs.
120/equipment
12. Supervision charge for Service Connection(if service
line laid by Consumer through licensed Contractor)
12.a Single phase LT connection Rs 175.00 Rs 1500.00
12.b Three phase LT connection Rs 400.00 Rs 1500.00
12.c Loop LT connection Rs 95.00 Rs 1500.00
13. Parallel Operation charge for availing Grid support
by CPP
Rs 18/kVA per
month on the
installed capacity
of CPP
JK SERC
Regulations
14. Shifting of connection
Actual material
cost+15%
supervision
charge
Actual material
cost+15%
supervision
charge
15. Hiring of Utility’s plant and equipment
15.a For initial hire agreement period
1% pm on
current schedule
of rates
2.5% pm on
current schedule
of rates
15.b For subsequent period of hire agreement Twice of 15.a Twice of 15.a
15.c For LT consumers(more than 100 HP) converting to HT Same as 15.a &
15.b
Same as 15.a &
15.b
16 Transfer of Name
16.a LT Rs. 100.00 Rs 300.00
16.b HT Rs. 600.00 Rs. 600.00
17. Booklet for HT/LT Tariff Rs. 20.00 Rs. 150.00
18. Connection/disconnection charges for temporary
connection
18.a LT temporary connection Rs. 120.00 Rs. 300.00
18.b HT temporary connection Rs. 600.00 Rs. 1000.00
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 20
CHAPTER 3: PUBLIC CONSULTATION PROCESS
3.1 The Commission directed JKPDD-D to publish the gist of the proposal indicating
the salient features of its APR petition for FY 2013-14 and Tariff Revision
proposal for FY 2014-15 for inviting objections and suggestions from the
consumers and other stakeholders. The JKPDD-D published a gist of the APR
and Tariff Petition in several widely circulated newspapers in the State on 1st and
2nd
March 2014.
3.2 The Commission issued public notices for conducting public hearings in Jammu
and Srinagar in leading newspapers in the State on 25th
, 26th
& 27th
April 2014.
3.3 The consumers and other stakeholders were encouraged to obtain copies of the
petition as submitted by JKPDD-D from the following offices of JKPDD-D on
payment of photocopying charges:
(a) Development Commissioner (Power), Janipur, Jammu
(b) Chief Engineer, EM&RE Wing, Kashmir, Sonawar (behind Hotel
Shangrila), Srinagar
(c) Chief Engineer, EM&RE Wing, Canal Power House, Jammu
(d) SE, EM & RE, Circle, Choglamsar, Leh
3.4 Copies were also made available to be downloaded from JKPDD-D website:
www.jkpdd.gov.in and Commission website: www.jkserc.nic.in.
3.5 The public notice advised respondents to submit (in person or by post or by fax)
four copies of their objections written either in English, Hindi or Urdu to the
Commission with two copies to JKPDD-D. Respondents were also given the
option to be heard in person during the public hearings conducted by the
Commission. The last date for submitting the comments/ objections on the
petition was 29th
March 2014.
3.6 JKPDD-D were informed to reply to each of the objections/ comments/
suggestions received within three days of the receipt of the same but not later
than 5th
April 2014 for all the objections/ comments/suggestions received till
29th
March 2014.
3.7 The Stakeholders were advised to submit their rejoinders on replies provided by
JKPDD-D either during the public hearing or latest by 8th
April 2014.
3.8 The Commission and Petitioner received objections/ comments in writing from
five (5) respondents. The list of stakeholders who responded to the public notice
on APR and tariff petition in writing and those who attended the public hearing is
provided in Annexure 2 and Annexure 3, respectively.
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JKSERC Page 21
3.9 The process of holding public proceedings as required under the relevant
Regulations could not move ahead in view of 16th
Lok Sabha elections and
imposition of Model Code of Conduct w.e.f. 5th
March 2014. In fact, the
Commission was prevented to move ahead in this matter vide the Election
Commission of India’s (ECI) communication no. 437/6/MISC/2014-CC &
BE/322 dated 17th
February 2014, in which, inter-alia it was mentioned in
unambiguous terms that once Model Code of Conduct is imposed for the
forthcoming Lok Sabha elections, it shall be applicable to the Electricity
Regulatory Commissions also.
3.10 The Central Electricity Regulatory Commission (CERC) and some State
Electricity Regulatory Commissions (SERCs) including JKSERC approached
Election Commission of India (ECI) for relaxation. Ultimately, ECI vide
communication no: 437/6/1/2014- CC & BE/ dated 23rd
March 2014 conveyed
that the Commission has no objection in the continuance of the process required
for the decision on the power tariff. However, tariff award shall be made only on
the completion of polling in the relevant state i.e. after the poll date / dates in that
State. The JKSERC immediately on receipt of the clarification notified a time
schedule for public hearings at Jammu and Srinagar on the APR and Tariff
Petitions for distribution and transmission business of the JKPDD for
FY 2013-14 and FY 2014-15.
3.11 The Commission held public hearings in Srinagar on 24th
May 2014 and in
Jammu on 29th
May 2014, to discuss the petition filed by JKPDD-D for approval
of APR for FY 2013-14 and tariff revision proposal for FY 2014-15.
3.12 The respondents were given an opportunity to put forth their comments and
suggestions on the Petition. The Commission also allowed persons who had not
submitted written responses but attended the public hearings to express their
views, regarding the petition and the general functioning of JKPDD-D.
3.13 The issues raised during the public hearing process, the responses of JKPDD-D
and the Commission’s observations are detailed below:
Failure to provide requisite details and information in the Petition
3.14 The Commission received several objections stating that JKPDD-D has failed to
provide requisite details, information and particulars as prescribed in the formats
which are necessary to justify their claims and revenue requirements. The
Objectors further submitted that JKPDD-D has not given any justification for the
substantial increase in proposed expenditure for MYT Control period and
requested the Commission to apply a prudence check.
3.15 The Objectors also pointed out that in spite of repeated requests, the Petitioner
has failed to provide data for power supply and collections at district and
consumer level for the entire state of J&K.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 22
Petitioner’s Response
3.16 JKPDD-D submitted that they have furnished the best available requisite details
and information available with them in the notified formats. JKPDD-D further
submitted that division wise and category wise revenue collected and energy
consumed are available in the Year Book issued by it every year which is
uploaded on JKPDD website.
Commission’s View
3.17 The Commission observed that there are a number of deficiencies in the petition
submitted by JKPDD-D and directed the JKPDD-D to provide detailed
clarifications and additional data as communicated through various letters by the
Commission.
3.18 The Commission notes with concern that the data provided by the JKPDD-D
does not include the requisite details, information and particulars as required
according to the prescribed formats given in the JKSERC (Multi Year
Distribution Tariff) Regulations, 2012. Further even the information furnished by
the Petitioner lacks authenticity. The Commission also notes that the data
submitted in the Petition by JKPDD-D and that provided in Year Book, resource
plan / Budget estimates of the State Government seldom match.
3.19 Despite reminders issued by the Commission to furnish district-wise/ circle-wise
data for losses and projections of loss reduction as required under the JKSERC
(Multi Year Distribution Tariff), Regulations 2012, the JKPDD-D has failed to
provide such information. The JKPDD-D failure in providing the requisite
information will lead to delay in proper implementation of principles of MYT in
full. Till such time actual base line data is not established and correct estimates
for loss reduction & metering not made available, the implementation of MYT
will suffer.
3.20 In view of above, the Commission directs the Petitioner to submit the district-
wise and circle-wise loss reduction plan together with targets achieved in the
prescribed MYT formats along with next tariff Petition. The failure to do so shall
invite penal action by the Commission.
Power Purchase Cost
3.21 The Objectors submitted that the power purchase quantum and cost has not been
estimated in accordance with Regulation 18 and 19 of the JKSERC (Multi Year
Distribution Tariff) Regulations, 2012. It was further mentioned that the
Petitioner should explain the variance in the actual power purchase cost for
FY 2013-14 over the approved cost for the same period. The Petitioner should
also provide a detailed analysis indicating the impact of price, quantity and
efficiency variance in power purchase cost.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 23
3.22 The Objectors further submitted that JKPDD-D has projected unwarranted
substantial increase in the power purchase cost per unit for the Control period
over the approved power purchase cost. The cost of energy available from the
State generating companies ought to have been taken as per the approved rates of
the Commission and that of energy purchased from Central Generating stations
ought to have been taken as per the CERC’s orders.
Petitioner’s Response
3.23 The Petitioner stated that it is regularly estimating the unrestricted and restricted
power and energy demand of the state based on the past trends and historical data
to arrive at power purchase quantum to be arranged through various sources.
Also periodic electric power survey of the country is conducted by the Central
Electricity Authority (CEA) to forecast region wise/state wise demand of
electricity on short term and long term basis. The energy consumption during last
five years and demand forecast done by CEA for 12th
& 13th
five year plan for
the state of J&K has been summarised in following table.
Table 13: Energy Forecast for J&K State by CEA Estimates
Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Un-restricted
energy requirement
–MU
13992 14425 14872 15333 15808 16298
Restricted energy
requirement -MU 12504 13083 13749 14503 15351 16298
Un-restricted Peak
load –MW 2419 2471 2523 2577 2631 2687
Restricted peak
load –MW 1802 1934 2086 2261 2460 2687
3.24 The sales in the metered and unmetered categories have been assessed on a
proper methodology in a transparent manner. The sales in unmetered category
have been calculated by working the units backwards from the amount billed on
the basis of connected load.
3.25 Apart from the power available from JKSPDC generating stations and share of
central generating stations, the JKPDD has arranged power from short term
sources as average power exchange rates are cheaper than other long term
sources. The tariff for JKSPDC generating stations is being determined by
JKSERC and the tariff for Central generating stations is determined by CERC,
however for the power purchased through short term sources, the JKPDD ensures
that such power is purchased on the average exchange rates not higher than the
average pooled price.
Commission’s View
3.26 The Commission has undertaken a detailed analysis of the power purchase
quantum and cost of the Petitioner for review of FY 2013-14 and determination
of ARR for FY 2014-15 in relevant sections of this Order.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 24
3.27 The Commission also notes that the Petitioner has not submitted its long term
and short term power procurement plan even after repeated directives of the
Commission. The Commission again directs the Petitioner to submit its long term
and short term power procurement plans along with next tariff petition.
Operation and Maintenance Expenses
3.28 The Objectors submitted that the Petitioner has projected a substantial increase of
18% in O&M expenses in the revised estimates for FY 2013-14 as compared to
the approved expenditure for the same period. Neither any break-up of the
expenses nor any detail or justification has been provided by the Utility.
Petitioner’s Response
3.29 The Petitioner stated that the employee expenses, which constitute the majority
(91%) of the O&M expenses are fixed in nature and the employees are employed
and paid by the J&K Government in the same manner as the other Government
employees of the state. JKPDD-D also stressed that it does not get sufficient
funds for repair and maintenance of its assets as required under the norms,
thereby actual O&M costs are higher than the norms.
Commission’s Analysis
3.30 The Commission has undertaken a detailed analysis of the O&M cost related to
review of FY 2013-14 and determination of ARR for FY 2014-15 in relevant
sections of this Order.
Distribution loss level
3.31 The Objectors pointed out that the claim of reduction of losses by 4% is
erroneous and misleading and the Petitioner should justify its claims. Moreover,
the measures taken by the Petitioner are only in those areas/circle stations where
the distribution loss is already within tolerable limits. Thus, the Petitioner was
asked to provide data on circle wise distribution loss quantity and percentage
with respect to present status, measures taken and achievements made towards
reduction of losses; however the Petitioner failed to provide the same.
3.32 The Objectors also submitted that according to the recommendations of Abraham
Committee Report, the Petitioner had fixed target of 43% combined T&D loss
level for FY 2007-08 and was expected to reduce the loss level by 4% every year.
In view of the recommendations of the Abraham Committee Report, the T&D
losses for FY 2013-14 should have been 19% and that at the end of the MYT
Control period, the Petitioner should have been able to reduce the T&D losses to
11% as depicted in the following table:
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 25
Table 14: Projected T&D Loss Vs. Targeted Loss from FY 2007-08 to FY 2015-16
Year Proposed Distribution Losses Abraham Committee Recommended T&D
loss
2007-08 49.31% 43%
2008-09 61.31% 39%
2009-10 62.06% 35%
2010-11 58.70% 31%
2011-12 56.40% 27%
2012-13 (R.E) 55.50% 23%
2013-14 (Proj.) 49.50% 19%
2014-15 (Proj.) 46.10% 15%
2015-16 (Proj.) 41.00% 11%
3.33 As can be seen the performance of the Petitioner is much below the required
level. Due to extremely high loss to the tune of 50%, the bonafide consumers are
compelled to pay twice the cost of electricity. The Objectors submitted that no
justification has been provided by the Petitioner for putting the burden of such
high level losses on the consumers which are clearly on account of inefficiency
of the utility itself.
3.34 The Objectors submitted that the States like Uttarakhand and Himachal Pradesh
also have similar characteristics as that of our State i.e. scattered population,
difficult terrain, low load density and long sub-transmission and distribution lines
etc. but the loss levels are much lower and are in the range of 12-17% only.
3.35 It was also pointed out that in order to reduce power theft, a dedicated police
squad be created and division with all feeders with top 10% of distribution losses
be put under Aerial Bunched Cable (ABC).
Petitioner’s Response
3.36 The Petitioner has argued that since power theft and pilferages are leading to
huge commercial losses in the state, it’s the consumer behavior across the state
and across all consumer categories which is also to be blamed for the high losses
in the state. Technical intervention alone cannot help in reduction unless
collective behavior towards use of electricity changes.
3.37 In response to the Objector’s concern that the claim of JKPDD-D of 4%
reduction in losses is misleading, the Petitioner stated that since the loss levels
have come down to 49.5% in FY 2013-14 as compared to 54.28% in FY 2012-
13, it had claimed a reduction of 4.78%.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 26
3.38 Further, the Petitioner conveyed that they are committed to reduction of losses
and in fact has proposed a realistic trajectory for reduction of losses. Urban Areas
are being covered under R-APDRP for loss containment. State govt. is pursuing
Union Power Ministry to include and fund smaller townships (having population
of over 4000 as per 2001 census) on same lines as has been done under R-
APDRP. Under R-APDRP scheme 30 Towns have been identified as project
areas in J&K State at an approved cost of Rs 1817.26 Cr with the objective of
achieving a target of 15% AT&C loss with minimum 3% every year on sustained
basis for a period of five years in the project areas. The project areas include 11
towns in Jammu region including Jammu City and 19 towns in Kashmir region
including Srinagar City.
3.39 JKPDD-D has also identified feeders in terms of AT&C loss and power supply to
the areas which will be regulated on the basis of AT&C loss after necessary
approvals of the Commission. The junior engineers have been designated as
feeder managers and their performance shall be gauged on the basis of AT&C
loss on the feeder. In order to check the misuse of energy and curb power theft
the JKPDD-D has constituted multitier inspection squads. These inspection
squads regularly conduct inspection of various consumer categories across the
state.
Commission’s View
3.40 The Commission is concerned with the lack of reliable data regarding the actual
loss level of the Petitioner. The Petitioner has failed to comply with the data
requirements specified in the JKSERC (Multi-year Distribution Tariff)
Regulations 2012. A pre-requisite for determining the actual loss levels is the
completion of metering at system and consumer levels. The Petitioner is to
comply with the timelines specified for metering in the Suo-moto Order dated
21st April 2014.
3.41 The Commission agrees with the Objectors that the losses projected by the
Petitioner are very high. The T&D losses of the Petitioner are amongst the
highest in the country and urgent intervention is required for rectification of this
situation.
3.42 The Commission finds no merit in the Petitioners submission of attributing the
high loss levels in the state to the behavior of its consumers. It is the
responsibility of the Petitioner to carry out metering of all unmetered consumers
as per the timelines specified in the Suo-moto Order dated 21st April 2014,
undertake appropriate investments in the network to plug leakages and conduct
regular vigilance checks on suspected cases of theft and unauthorized use of
electricity.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 27
3.43 In view of above and in accordance with the methodology adopted in the
previous Tariff Orders, the Commission shall disallow any additional power
purchase over and above the target loss level as the Commission feels that such
inefficiencies cannot be passed on to the law-abiding consumers. This shall
ensure that tariffs are reflective of prudent costs and the consumer is not
burdened with the inefficiencies of the Petitioner.
3.44 Further, the Petitioner should also examine the feasibility of implementation of
the suggestions of stake holders such as incentives for reducing losses on feeders,
curtailment schedule based on loss levels and installation of AB cables and
HVDS systems on high loss feeders. In addition, the Petitioner during the public
hearing committed to make available the circle wise and feeder wise data on
losses at its website. The Commission appreciates this proactive initiative by the
Petitioner and directs the Petitioner to implement this proposal before submission
of the next tariff petition.
Electricity Duty
3.45 The Objectors submitted that the tariff may be determined after adjusting the
applicable Electricity Duty payable by the consumers to the Government, which
is perhaps the highest in the country.
Petitioner’s Response
3.46 The Electricity Duty is levied by the State Government and the Petitioner has no
control over it.
Commission’s View
3.47 The levy of Electricity Duty under the J&K State Electricity (Duty) Act 1963 is
the matter of State Government and the Commission has no role to play in
determination of these rates. However, the JKPDD-D should take up this matter
separately with the Government to explore the possibility of rationalization of
charges after taking into consideration the electricity duty rates prevailing in
other States in the country.
Depreciation
3.48 The Objectors submitted that the Petitioner has claimed depreciation in violation
of the Regulation 24 (b) of the JKSERC (Multi Year Distribution Tariff)
Regulations, 2012. Since JKPDD-D is a Govt. Department, the assets are created
out of the Govt. funds and as such in terms of the aforementioned regulation, no
deprecation is to be allowed on the assets funded by the Govt. funds. The
Objector also submitted that the Petitioner has not provided the proper and
necessary details for calculation of the depreciation and as such it cannot be
allowed to claim depreciation at a consolidated rate without giving asset-wise
break-up and relevant rate applicable.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 28
Petitioner’s Response
3.49 The Petitioner submitted that since the Commission has already taken a view on
this, it is further left to the Commission to decide the course of action.
Commission’s View
3.50 As per the Regulation 24 (b) of the JKSERC (Multi Year Distribution Tariff)
Regulations, 2012, depreciation will not be allowed on assets to be funded by
capital subsidies, consumer contributions or Government grants. Accordingly,
the Commission asked the Petitioner to submit bifurcation of Gross Fixed Assets
(GFA) & Capital Works-in-Progress (CWIP) as on 31st March 2012 funded
through grants and long-term loans (REC, PFC etc).
3.51 As the Petitioner submitted that the exercise of segregation of assets into
transmission and distribution functions of the utility is under progress; the details
of financing of GFA for distribution business will be furnished after the
bifurcation is completed.
3.52 In the absence of above-mentioned details, the Commission has provisionally
approved depreciation on the outstanding balance of loans as on 31st March 2012
only as approved in MYT Order dated 25th
April 2013. No depreciation has been
considered on remaining amount of GFA as it is considered to have been funded
through grants from State/Central Government.
3.53 However, this is subject to true up on the basis of actual segregation of GFA into
that financed through loans and grants to be provided along with next tariff
petition.
3.54 With regard to the rate of depreciation, the Commission noted that till such time
the study for segregation of assets is complete, the average rate of depreciation as
approved in previous Tariff Orders shall be considered.
Interest on Working Capital
3.55 The Objectors submitted that the Petitioner has not computed working capital as
per Regulation 26 of the JKSERC (Multi Year Distribution Tariff) Regulations,
2012 as it has not reduced the amount of security deposits from customers from
the estimated amount of working capital.
3.56 Further the rate of interest of 15% is higher than the J&K Bank Advance Rate as
specified by the above mentioned regulations. Moreover, the concept of PLR is
not defunct and has been replaced by the Base Rate concept. Moreover, the
Objectors pointed out that as the Petitioner has not taken any working capital
loan and as such all its working capital requirements are funded through State
Government funds, no interest on working capital should be allowed.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 29
Petitioner’s Response
3.57 The Petitioner submitted that since the Commission has already taken a view on
this, it is further left to the Commission to decide the course of action.
Commission’s View
3.58 The Commission has estimated the normative working capital requirement in line
with the Regulation 26 of the JKSERC (Multi Year Distribution Tariff)
Regulations, 2012 which states that:
”the rate of interest for computation of interest on normative working capital
shall be considered equal to the J&K Bank Advance Rate as of the date on which
the petition for determination of tariff is accepted by the Commission”
3.59 Accordingly, the Commission has considered the applicable J&K Bank Advance
rate of 14.75% to determine the cost towards interest on working capital for
FY 2013-14 and FY 2014-15 respectively.
Water Usage Charges
3.60 The Objectors submitted that Rs 305.65 Cr has been claimed on account of water
usage charges for the control period and again no justifications have been given
for such charges. They said that these charges form part of the expenses of the
generating companies which further form part of the power generation tariff
payable to the generating companies. The Objectors said that there is no
justification for claiming such expenditure in the revenue requirements of
JKPDD-D for the control period.
3.61 The Objectors also requested the Commission to disallow prior period
expenditure on account of water usage charges as approved in the Tariff Order
for FY 2012-13 dated 16th
April 2012 as no true-ups are allowed.
Petitioner’s Response
3.62 The Petitioner submitted that since the Commission has already taken a view on
this, it is further left to the Commission to decide the course of action.
Commission’s View
3.63 The Water usage charges are levied pursuant to the Orders passed by the State
Water Resource Regulatory Authority, Government of Jammu & Kashmir from
time to time. However, as it is a pass through expense, the Commission has not
included it in the Generation tariff for JKSPDC and accordingly allows it in the
present petition over and above the generation cost with the direction that the
funds to discharge this liability will be provided to the utility by the Government
over and above the budgetary allocation for power purchase as claimed by the
Petitioner.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 30
Security Deposit
3.64 The Objectors submitted that even though the Commission had decided that
security deposit shall be levied at the rate of two (2) months bills but the
Petitioner was charging as per its will.
Petitioner’s Response
3.65 The Petitioner stated that the security deposit for electricity supplied is to be
charged as per JKSERC Security Deposit Regulations 2008 and no officer of
JKPDD-D can charge security deposit at its own will. Any deviation should be
reported to the concerned authorities.
Commission’s View
3.66 The Commission agrees with response of the Petitioner and clarifies that if any
consumer has faced such an issue, the consumer can approach the Commission or
the JKPDD-D directly for relief.
Tariff Design
3.67 The Objectors submitted that JKPDD has not computed the cost to serve different
consumer categories in accordance with the Regulation 36(b) and (c) of the
JKSERC (Multi Year Distribution Tariff) Regulations, 2012 which prescribe
methodology for computation of cost to serve different categories of consumers.
The Petitioner has taken overall average cost of supply as the basis for fixation of
tariff whereas the provisions of the Regulations state that the Utility may
differentiate the consumers on the basis of consumer’s load factor, power factor,
voltage, total consumption of electricity etc. Since the Petitioner has not
computed the cost of supply as per the above mentioned guidelines, the petition
should be rejected.
3.68 With respect to Commission’s determination of prudent loss levels based on the
national average loss level, the Objector submitted that the prudent loss levels
have to be determined on the basis of scientific studies and technical data and
benchmarked to comparable states namely Himachal Pradesh and Uttarakhand.
Petitioner’s Response
3.69 The Petitioner submitted that although the tariff should progressively reflect the
cost of supply and reduce cross subsidies as per the J&K Electricity Act 2010 and
National Tariff policy, the tariff of various categories of consumers in the state is
far below the actual cost of supply and prudent cost of supply. The average tariff
of some consumer categories is even below or around the actual power purchase
cost. Also the average tariff of various categories of consumers in J&K is lower
than that in other neighboring states. Even if the objector explores the open
access market it will find open access tariffs much higher than what is being
charged from the objector in the State. The comparison of consumer tariff and
total revenue realized vis-à-vis power purchase cost is given as under:-
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 31
Table 15: Table of comparison of revenue realized viz a viz power purchase costs (Rs Cr)
Particulars 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
(RE)
Power purchase cost 1783.68 2543.409 2797.161 3761.772 4081.983 3873.79
Total revenue realized 628.00 702.30 802.82 1014.16 1419.29 1444.95
Revenue realized as
percentage of power
purchase cost (% age) 35.21% 27.61% 28.70% 26.96% 34.77% 37.30%
3.70 It can be seen from above that below 40% of the power purchase cost is
recovered from the consumers through approved tariffs although the rest of the
un-paid energy is also being consumed by the consumers across the state. The
whole burden is being borne by the Govt. of Jammu & Kashmir and no burden is
passed on to the consumers.
Commission’s View
3.71 The Commission has noted the concerns of the Objectors as well as the
submissions of the Petitioner. It is clarified that the Commission considers
prudent loss levels while designing tariffs to make a comparison with cost of
supply at rational/ prudent loss levels instead of considering projected/approved
loss levels which are substantially higher. This comparison is done to reach
tariffs which recover prudent costs and not burden consumers with actual losses.
While this approach is followed to determine tariffs, the Commission also notes
that the actual tariffs in State are low and no tariff shock is passed on to
consumers.
Power Factor Discount/KVAh Tariff
3.72 The Objectors requested the Commission to grant rebate for consumers having
Power Factor (PF) above 0.95 as per the practice followed in other states.
3.73 The Objectors submitted that it was unfair on the part of the Utility to ask for
revision in consumption unit from KWh to KVAh for consumers with connected
load from 20 kW to 100 kW. They further submitted that due to the KVAh
factor, the power bill shall increase considerably by 10 to 15%.
3.74 It was also pointed out that since the Commission in the Tariff Order dated
16th
April 2012 had directed that KVAh based billing be introduced only after the
requisite infrastructure is in place, JKPDD-D has not spoken anything about the
same. It was also suggested that the proposal of the Utility to implement KVAh
tariff should be deferred till the time proper infrastructure is in place.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 32
Petitioner’s Response
3.75 The Petitioner said that the rationale behind introduction of KVAh tariff is to
encourage consumers to initiate on their own, the steps to improve their Power
Factor (PF). The KWh and KVAh tariffs are currently proposed to be introduced
in energy charges only and are proposed to be kept at par with each other so that
at unity power factor there is no disparity in the charges paid by the consumers in
the same category for same consumption.
3.76 The Petitioner also stated that the introduction of KVAh billing for loads above
20 kW is a Demand Side Management measure and shall encourage the
consumers to install capacitors of proper rating. The JKPDD-D charges 10% over
and above energy charges from consumers if the capacitors are not installed by
the consumer. It will be in the hands of the consumer to control its bill and save
this 10% of the bill which otherwise they are paying if capacitor is not installed.
3.77 Moreover, for switching over to KVAh billing in respect of consumers with load
above 20 kW the department has proper infrastructure and mechanism in place.
Tri-vector and Prodigy meters have already been installed on most of the
installations and tri-vector meters are available with the department for
replacement where ever required.
Commission’s View
3.78 The Commission agrees with the Petitioner’s view that KVAh based tariff is a
better approach due to better efficiency and transparency. The Commission in its
Tariff Order dated 16th
April 2012 has also directed that the KVAh based tariffs
should be gradually extended to all three phase consumers after suitable tri-
vector meters are installed.
3.79 However, in the current scenario wherein even 100% metering is not done and
proposal at KVAh based tariffs is not available, the introduction of KVAh based
tariffs would not have the likely impact of improving the power factor.
3.80 Further, even though the Petitioner submits that it has the requisite infrastructure,
it failed to provide any details to the Commission. Accordingly, the Commission
for the time being has not approved the Petitioner’s proposal for levy of KVAh
based tariff for proposed classes of consumers.
3.81 It further directs the Petitioner to submit status of preparedness of installation of
tri-vector meters for all consumers proposed to be shifted to KVAh based
metering along with the impact on consumer’s revenue with the next tariff
petition for consideration by the Commission and it will be considered for
implementation w.e.f. FY 2015-16 provided all the requisite infrastructure is in
place by then.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 33
Re-Categorization of Consumer Category
3.82 The Objectors submitted that the Commission in the Retail Tariff Order for
FY 2012-13 while issuing directions under the clause (E) New Directives has
directed JKPPD for rationalization of consumer categories and to undertake
reclassification of consumer categories in J&K based on national/State level
power data in consultation with CEA for the purpose of rationalization of
consumer categories.
3.83 Based on the above directive, the consumer category HT-PIU Industrial supply
may be merged with consumer category HT-Industrial Supply because the power
intensive units were facing discrimination in the form of higher power tariff as
compared to HT Industrial Supply consumer category. Even the CEA has not
created power intensive units as a separate category.
3.84 It was also stated that many of the states are moving towards creating single
category for each broad based nature of consumption like agriculture, domestic,
industry, commercial and public works. After creation of such broad categories
for the purpose of tariff design, the specific differentiation are recognized
through well recognized aspects such as power factor, load factor, voltage level
etc.
3.85 It was proposed that there should be only two industrial supply categories i.e.
Large Industrial Power Supply (LS) indentifying HT Industrial Supply above
100KW metered on KVAh and Small Industrial Power Supply (LS) including LT
Industrial Supply under 100 KW metered on KWh.
Petitioner’s Response
3.86 The Petitioner stated that presently it has no plan of re-categorization of
consumer categories. Also the use of electric induction and arc furnaces has been
banned by the Govt.
Commission’s View
3.87 The Commission shall take appropriate view on the above in the next tariff order
when Petitioner submits detailed tariff proposal along with requisite authentic
data.
External Transmission Losses
3.88 The Objectors submitted that the Inter-state transmission losses of 4% as claimed
by the Petitioner should be thoroughly verified and the standards applied in other
states should be applied while approving such charges.
Petitioner’s Response
3.89 The Petitioner stated that it had taken the Inter-state transmission losses as 3.6%
which was also the approved figure of the Commission.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 34
Commission’s View
3.90 The inter-state Transmission losses are approved based on transmission losses
applicable in northern region. The other State Commissions also follow the same
approach. Accordingly, the Commission has approved the inter-state
transmission loss levels at 3.6%.
Steep Hike in Miscellaneous charges
3.91 The Objectors submitted that the hike in miscellaneous charges was very steep
and the hike should not be more than the inflation rate of the previous year.
Petitioner’s Response
3.92 The Petitioner stated that the miscellaneous charges had not been revised for last
many years and that hike is in proportion to market rates of materials and
services.
Commission’s View
3.93 The Commission is of the view that miscellaneous charges in the State have not
been revised for past many years and as such these need to be revised keeping in
mind inflationary increase and also benchmark with other states with similar
conditions such as Himachal Pradesh, Uttarakhand, etc. Accordingly, the
Commission has allowed reasonable revision only in the miscellaneous charges
which have been summarized in Chapter 11: Schedule of Miscellaneous
Charges of this Order.
Incremental Cost per Unit
3.94 The Objectors submitted that JKPDD-D has incurred incremental cost per unit on
power purchase due to its operational inefficiency and not because of rate hike in
tariff by the JKSERC and CERC Orders. Therefore the incremental cost per unit
of power purchase should be disallowed.
Petitioner’s Response
3.95 The Petitioner stated that although the incremental cost has been incurred on
additional power consumed in the State, it has not been charged to the consumers
over and above the tariff.
Commission’s View
3.96 The Commission is of the view that any incremental cost of power purchase can
be estimated on the basis of audited data only. As such the data submitted by
Petitioner for FY 2013-14 is provisional based on actual for nine (9) months and
projections for remaining period of the year.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 35
3.97 Further, the Commission vide its Order No. JKSERC/29 of 2013 dated 2 July
2013 added following proviso to Regulation 8.2 of the JKSERC (Multi Year
Distribution Tariff) Regulations 2012:
“Provided that truing up of expenses for any year shall be carried out on the
basis of the audited annual accounts for the year subject to prudence check by
the Commission.”
3.98 Thus, even though Regulation 8.2 provides for annual performance review, any
incremental costs can be passed through only on basis of audited annual accounts
for the year.
3.99 The Commission has not passed through any incremental cost of power purchase
other than that approved due to revision in metering plan adopted by the
Commission vide its suo-moto Order dated 21st April 2014 and vis-a-vis
availability of approved budget allocations for the FY 2013-14.
Tariff for Hotel Industry
3.100 The Objectors submitted that since hotels have been declared as an industry by
the State governments, industrial tariff be applicable and not commercial tariff.
Petitioner’s Response
3.101 As hotels do not fall in the definition of Industry where raw material is converted
into goods therefore hotels fall into the commercial category and is being charged
as per commercial rates which also are very less in the state when compared to
actual cost of supply, prudent cost of supply and power purchase cost.
Commission’s View
3.102 The Commission examined the relevant Orders produced by the objectors for
declaration of tourism as an industry. These orders specify the concessions/
subsidies allowed to the tourism industry including hotels by the State
Government and includes subsidy on purchase of diesel generating sets and
exemption of such generating units from payment of electricity duty under
Section 10 of the J&K Electricity (Duty) Act 1963 for a period of five years.
There is no mention of allowing industrial tariff to tourism industry including
hotels. Hence, the objectors do not qualify for tariff applicable for industry. Any
such move can have wider implications for the Utility.
Audit of Accounts of JKPDD
3.103 It was pointed out by the objectors that the income, expenses and other accounts
of JKPDD have not been audited by the Auditor General and the ARR and tariff
petition for next year should be filed along with supporting audited accounts.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 36
Petitioner’s Response
3.104 The JKPDD-D being a government department, its accounts are regularly being
audited by Accountant General and state finance department and annual reports
are published.
Commission’s View
3.105 The Commission directs the Petitioner to submit audited accounts along with
next tariff petition for truing up of expenses for FY 2013-14. In absence of
audited accounts, the Commission shall not provide any true up to the Petitioner.
Special provision for Industrial Entrepreneurs
3.106 It was suggested by one of Objectors that since industrial entrepreneurs require
uninterrupted supply of power, they should be permitted to take supply from
33 KV line.
Petitioner’s Response
3.107 The Petitioner responded by stating that it does not deny power supply to any
consumer on higher voltages provided that the consumer qualifies for such
requirement as per JKSERC Supply Code Regulations and the supply is feasible.
Commission’s views
3.108 In view of the response of the Petitioner, the objectors can take supply at higher
voltages after meeting necessary requirements as per the JKSERC Supply Code
Regulations, 2011.
Publishing list of defaulters
3.109 It was suggested JKPDD-D should prepare area wise list of consumers having
huge arrears and furnish the information to the Commission. The list should
include outstanding from State Govt. departments, Government undertakings,
local bodies and private parties also.
3.110 This issue was also raised in the meeting of the SAC. It was suggested that
disconnections/ publication of the name of defaulting consumers should be done
in case of non-payment of arrears for minimum of three months as the monthly
energy bills for some consumers is more than the financial limit of the arrears
fixed by the utility in such case.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 37
Petitioner’s Response
3.111 The Petitioner responded that the list of consumers with huge arrears that include
all categories of consumers is regularly being prepared and published in various
news papers. Such cases are being also referred to electricity mobile magistrates
for appropriate legal course.
3.112 The suggestion of the Objectors with regard to publication of list of defaulters
has been taken note of.
Commission’s Views
3.113 The procedure for disconnection of supply on account of non-payment of energy
dues is specified in the Section 50 of the J&K Electricity Act 2010 and relevant
provisions of the JKSERC Supply Code Regulations 2011 which need to be
followed in letter and spirit to avoid accumulation of arrears.
3.114 The Commission directs the Petitioner to submit consumer category-wise list of
consumers with huge arrears along with steps taken to recover the arrears and
actual recovery status with the next tariff petition.
Capital Investment and treatment of Depreciation
3.115 The Objectors submitted that in respect of demand charges, for the last 5 years no
capital investment has been made by JKPDD-D to up-grade the system of
33 KV & 11 KV lines & system. And with decrease in the value of capital due to
depreciation, the fixed charges should come down considerably.
Petitioner’s Response
3.116 The Petitioner stated that it is regularly investing on the up gradation of the
system through various schemes funded by state and GOI. The Commission is
not allowing any depreciation on such investments and as such not passed on to
the consumer.
Commission’s View
3.117 As most of the capital expenditure is done through funds from State Government
and grants, the Commission does not allow any depreciation on such assets to
consumer tariffs in the State.
Compliance to directives issued by the Commission
3.118 The Objectors raised the point of non-compliance of the directives issued by the
Commission in its past Tariff Orders by the Petitioner. The Commission has
issued detailed directives with timelines for submission of reports on the issues of
metering, T&D infrastructure, and revenue and billing processes etc. However,
the Petitioner has not made any significant progress on any of the directives
given and has not submitted the requisite reports as directed.
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Petitioner’s Response
3.119 The Petitioner stated that it has already submitted the current progress of
Compliance of directives with the Tariff Proposal.
Commission’s View
3.120 The Commission has received the compliance of directives from the Petitioner
and has given its views regarding the same in relevant chapter of this Order.
However the Commission directs the Petitioner to set up a special cell to attend
to regulatory affairs and to monitor timely implementation of the directions
issued by the Commission.
Change of category for defence establishments (MES)
3.121 Shree Ram Kumar Suryawanshee, CWE, Udhampur representing the MES
submitted that they receive electricity at two input points from the Petitioner’s
network. The electricity received is further distributed to mixed loads such as
domestic, schools, workshops, water supply etc. using the network infrastructure
maintained by MES. MES has to bear the distribution losses and the O&M cost
of its own network. However it is charged as per the State/Central Government
Departments Consumer Category (Schedule-3) which has the highest tariff in the
State thereby increasing the burden on MES. Accordingly, the Objector
proposed that the tariff category of MES be changed to General Purposes Bulk
Supply (Schedule-11) or alternatively the tariff for 53% of the consumption be
charged at domestic tariff in view of fact that it is being consumed by rank and
file in residential establishments and the remaining tariff be charged as per the
prevailing (Schedule-3) tariffs.
Petitioner’s Response
3.122 The Petitioner stated that the tariff for defence establishments run by
State/Central government is to be levied as per the Schedule -3 of the tariff
schedule as approved by the Commission.
Commission’s View
3.123 It is clarified that the defence establishments come under a separate category for
State/ Central Government Departments. The consumer (MES) is getting supply
at a single point, and as such differential tariffs for part of the supply cannot be
applied.
3.124 The category specific tariffs are possible only when consumers apply for separate
connection to JKPDD and execute a contract for the same as prescribed under the
relevant regulations.
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3.125 In case of a connection for Irrigation purpose, water supply, street lights etc., the
tariff schedule for State/ Government Departments (Schedule 3) already has
provisions for a separate tariff and accordingly connections can be taken
separately for such purposes by the defence establishments as per the tariff in
vogue. Moreover, the defence establishments are also exempted from payment of
22% of electricity duty which is chargeable from other consumers.
Demand Side Management
3.126 One of the Objectors stated that penalties for use of incandescent lamps cannot
be levied on consumers who are on metered supply and are also paying their bills
regularly. The Objector also stated that the industry cannot be stopped from
making use of incandescent bulbs. The Objector suggested that campaign should
be undertaken to spread the awareness of the benefits of using CFL bulbs in place
of incandescent bulbs.
3.127 The Objectors made the following suggestions with respect to the proposal that
CFL lamps should be made mandatory for commercial establishments in the
State:
(a) A new tax may be introduced to make the incandescent lamps expensive to
incentivize consumers to switch over to CFL lamps.
(b) Import of incandescent lamps in the State may be banned.
(c) CFL Lamps may be distributed at discounted rates after taking a loan from
J&K Bank and the interest on such a loan can be serviced through retail
tariffs.
(d) Monthly rentals may be taken against provision of free CFL lamps to
consumers.
(e) Private partnership may also be explored and proposals from private
players regarding these measures need to be invited and examined.
Petitioner’s Response
3.128 The Petitioner proposed that as a demand side measure, installation of CFL
lamps should be made mandatory for all commercial/ Government Departments/
PSUs, etc in the State in accordance with the State Government Order N0. 34
PDD of 2013 dated 12th
February 2013 and therefore the imposition of a fine as
proposed may be considered by the Commission.
Commission’s View
3.129 The Commission scrutinized the Order issued by Government of Jammu &
Kashmir vide Order No. 34 PDD of 2013 dated 12th
February 2013 and also
examined the relevant provisions enshrined in the J&K Energy Conservation Act,
2011.
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3.130 The Clause 24 (1) of Chapter VI ‘Penalties and adjudication’ of the J&K Energy
Conservation Act, 2011 states:
“If any person fails to comply with the provisions of clause (e) or clause (f) or
clause (u) or clause (k) or clause (m) or clause (n) or clause (p) or clause (r)or
clause (s) of Section 12, he shall be liable to penalty which shall not exceed Rs
10,000/- for each such failure and in the case of continuing failure, with an
additional penalty which may extend to Rs 1000/- for every day during which
such failure continues.
Provided that no person shall be liable to pay penalty within five years from the
date of commencement of the Act”
3.131 A reading of the stated provision makes it amply clear that even though utility/
State Government may levy penalty for non-compliance with the provisions of
the Act, no person shall be liable to pay any penalty within a period of five years
from the date of commencement of the J&K Energy Conservation Act, 2011. As
a period of five years from the commencement of the aforesaid Act has not yet
elapsed, the proposal of the Utility to levy a penalty is in contravention to the
provisions of the aforesaid Act. Therefore, the Commission directs the Petitioner
to re-examine the proposal.
3.132 Further, the Commission directs the Utility to launch an intensive and sustained
public awareness campaign on energy conservation pressing for use of CFLs/
LEDs. The Utility should also lay stress on using energy efficient appliances
including geysers, heaters, street lamps, etc. The utility should also avail the
assistance available for such programs from the concerned central government
agency.
Load limit for LT IS- II consumer category (Metered)
3.133 In the MYT Order dated 25th
April, 2013 to provide relief to seasonal industries
viz “Atta Chakkis, Rice huskers, Oil expellers, cotton grinning” operating in un
organized rural sector and having a load up to 10 HP, the Commission had
introduced a separate category LTIS-II. This category was charged lower fixed
charges in comparison to LTIS-I consumer category. The Objectors during the
public hearing pleaded that restricting the load up to 10 HP has not been of much
advantage to such unit holders as in most cases the load exceeds 10 HP. They
pleaded for increasing the load limit up to 20 HP in view of limited period of
operation / seasonal operation of such units in rural areas which are subjected to
load shedding unlike industrial units in the organized sector which are being
provided comparatively reliable power.
Petitioner’s Response
3.134 The Petitioner, with whom the issue has been discussed stated that while there
was no justification for allowing such a dispensation to band saw owners but in
the case of other seasonal units covered under LTIS– II consumer category the
Commission may take an appropriate view.
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Commission’s View
3.135 Keeping in view the objective behind introduction of LTIS-II consumer category
and in view of the explanation given, the Commission agrees to increase the load
limit to 15 HP in such cases only as are covered under LTIS-II consumer
category at present and are duly authorized to operate by the competent authority.
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CHAPTER 4: IMPLEMENTATION OF MULTI YEAR TARIFF
4.1 Section 55 of the J&K Electricity Act, 2010 (hereinafter referred as “Act”)
empowers the Jammu & Kashmir State Electricity Regulatory Commission
(hereinafter referred as “Commission”) to determine the terms and conditions for
determination of tariff. Further, it also lists down certain guiding principles
which have to be considered while determining the terms and conditions of tariff.
One of the key guiding factors is to adopt:
“Multi Year Tariff principles (MYT) and other principles that reward efficiency
in performance”
4.2 Further, Clause 8.1 of the National Tariff Policy states that the implementation of
the MYT framework should bring in reduction in risk for utility and consumers,
promote efficiency, attract investments, and bring greater predictability in
consumer tariffs. This framework should be applicable for both private and
public utilities. Further, it also states that first control period should have
flexibility to incorporate any change during the control period.
4.3 Based on the above mentioned principles, the Commission notified the ‘JKSERC
(Multi Year Distribution Tariff) Regulations, 2012’ on 6th
September 2012. In
these Regulations, the Commission has laid down the principles and framework
for MYT Regulation for the distribution utility in the State for the first Control
period beginning FY 2013-14 to FY 2015-16. Accordingly, the Commission vide
its Order dated 25th
April 2013 for determination of ARR for JKPDD-D for the
entire MYT Control Period for FY 2013-14 to FY 2015-16 adopted the MYT
Framework for the State of J&K.
4.4 In light of above regulations, the Petitioner has now filed for the annual
performance review (APR) of its costs for FY 2013-14 and tariff revision
proposal for FY 2014-15. However, on the analysis of the APR petition and the
detailed scrutiny of the ground realities, the Commission notes with concern that
even though the MYT framework has been implemented in principle, JKPDD-D
has failed to implement it in full thereby defeating the entire purpose of MYT
framework.
4.5 The Commission has identified following key issues and shortcomings in
implementation of MYT framework in the State.
Data gaps and inconsistency in data
4.6 Despite several discussions and directions issued the Commission notes with
concern that the data provided by the JKPDD-D does not include the requisite
details, information and particulars as required according to the prescribed
formats given in the JKSERC (Multi Year Distribution Tariff) Regulations, 2012.
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4.7 Further even the information furnished by the Petitioner lacks authenticity. The
Commission also notes that the data submitted in the Petition by JKPDD-D and
that provided in Year Book, resource plan / Budget estimates of the State
Government seldom match. This inconsistency in data and supply of incomplete
data in requisite formats make the exercise of projections of ARR for the MYT
period difficult for the Commission. Even the projections are alarmingly high in
comparison to actual as the base line data itself is inconsistent.
4.8 Thus, the Commission is of the view that till the time the Petitioner does not
submit audited data for preparation of base for projections of ARR for MYT
period, the basic principle of MYT i.e. future certainty will be defeated.
4.9 Accordingly, the Commission directs the Petitioner to submit audited accounts
for previous years along with formats complete in all respects with the next tariff
petition for undertaking true up of ARR for previous years. Till such time audited
data is not submitted, the Commission shall not undertake the true up and all
losses shall be borne by the JKPDD-D.
Metering
4.10 Even after several directives and Order of the Commission in the past, the
Petitioner failed to meet metering targets set out by the Petitioner itself in the
Commission’s Order dated 25th
April 2013. The failure to meter all consumers
even after extension of deadline for 100% metering shows lack of seriousness on
part of the Petitioner. Further, in its above mentioned Order, the Commission had
also directed the Petitioner to submit detailed metering plan approved by the
State Government for extension of deadline for achieving 100% metering by end
of FY 2015-16.
4.11 On failure of the Petitioner providing any details in this behalf, the Commission
undertook Suo-moto proceedings for obtaining revised metering plan from the
Petitioner. Accordingly, the Commission vide its Order dated 21st April 2014
adopted the revised metering plan finally submitted by the Petitioner for
achieving 100% metering by end of FY 2015-16 for the purpose of monitoring.
4.12 However, the Commission notes that in order to achieve metering targets, the
JKPDD-D should comply with all timelines and work towards it as a common
goal. The Commission accordingly issued several directives for achievement of
100% metering in the said Order and the same are reproduced below:
(a) The Commission directs that no further delay in achieving 100% current
consumers metering would be allowed beyond March, 2016. Any such
delay would not only invite penal action against the Respondents and would
also call for suitable action from the Commission declaring supply of
electricity to unmetered consumers as illegal in terms of the provisions of
Section 49(1) of J&K Electricity Act 2001.
(b) The Commission directs that JKPDD-D should establish and develop
authentic third party meter testing mechanism in the State as is required in
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terms of Section 44 of the Act read with Chapter A5 of the Jammu and
Kashmir State Electricity Supply Code, 2011 and report compliance to the
Commission with the next Annual Performance Review Petition.
(c) The Commission also directs that a comprehensive mechanism shall be
evolved by the Respondents for closely monitoring the implementation of
proposed metering plan at various levels particularly at the level of
Administrative Department. The province-wise/ Circle-wise/Division-wise
progress report in the light of the revised action plan submitted by the
Utility shall be submitted to the Commission on a quarterly basis for
review.
(d) The Commission further directs that as there has been serious deviation
from the mandate given by the State Legislature under Section 49(1) of the
Act 2010 for completion of metering within a period of 2 years from the
date of notification of the J&K Electricity Act, 2010, the JKPDD-D need to
place the facts before the State Legislature for ratification of the extended
dead line for achieving 100% metering in the State.
Circle-wise/ District-wise estimation of loss
4.13 The Regulation 18.1 of JKSERC (Multi Year Distribution Tariff) Regulations,
2012 provides for determination of loss reduction targets on basis of circle-wise
losses. However, even after repeated reminders to furnish district-wise/ circle-
wise data for losses and projections for loss reduction as provided in the above
mentioned regulations, the JKPDD-D has failed to provide so.
4.14 The JKPDD-D failure in providing the requisite information will lead to delay in
proper implementation of principles of MYT in full. Till such time actual base
line data is determined and correct estimates for loss reduction not made
available, the implementation of MYT will suffer and the purpose for which the
MYT was introduced will get defeated.
4.15 In view of above, the Commission directs the Petitioner to submit the district-
wise and circle-wise loss reduction along with next tariff Petition. The failure to
do so may invite penal action by the Commission.
Power purchase planning
4.16 The Regulation 19.1 of JKSERC (Multi Year Distribution Tariff) Regulations,
2012 provides for preparation of comprehensive Power Procurement Plan for
short term (less than 1 year) and a medium term (5 years) plan, separately stated
for peak and off-peak periods, for unrestricted demand of electricity for each
consumer category in its area of operation.
4.17 However, the Petitioner has failed to submit any details of power procurement
plan. Further, while preparing the plan the measures for Demand Side
Management (DSM) and Energy Efficiency (EE) also have to be incorporated
which also have not been reported by the Petitioner.
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4.18 The Commission also notes that even though it has given a target for purchasing
power from renewable sources to meet the Renewable Purchase Obligation
(RPO), the Petitioner failed to achieve the targets and has partially met the non
solar target only from JKSPDC’s mini-hydel stations.
4.19 The persistent failure of the Petitioner for not meeting targets and ignoring
provisions of relevant regulations will make the entire process ineffective.
4.20 Accordingly, the Commission directs that the Petitioner to submit a detailed
power procurement plan along with steps to incorporate Demand Side
Management (DSM) and Energy Efficiency (EE) principles and purchase of
power from renewable sources to meet its Renewable Purchase Obligation (RPO)
along with next APR Tariff petition.
4.21 In order to make the compliance with RPO targets more effective, the
Commission directs the JKPDD-D to open a separate account for meeting the
annual fixed obligation of renewable energy, which includes carry forward
balances and purchase of RECs to meet shortfall, if any. This is necessary to
ensure the compliance of the relevant regulations. JKPDD-D shall review the
position with the Nodal Agencies periodically and report the progress to the
Commission. Further, the utilization of the funds created in this account shall be
decided by the utility in consultation with the Commission as per the relevant
regulations.
Capital Investment Plan
4.22 Regulation 23 of JKSERC (Multi Year Distribution Tariff) Regulations, 2012
provides detailed guidelines for submission of scheme wise capital investment
plan along with the supporting documents like purpose of investment, capital
structure, capitalization schedule, financing plan and cost benefit analysis for
seeking approval from the Commission. However the Utility has failed to submit
any of these important supporting documents for accord of approval to
investment plan and capitalization schedule. This action of the Utility goes
against the concept of MYT regime.
4.23 The Commission accordingly directs the Petitioner to submit the scheme wise
details of Capital Expenditure Plan and Capitalization Schedule as per the
formats prescribed in the JKSERC (Multi Year Distribution Tariff) Regulations,
2012 by September 2014.
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JKSERC Page 46
CHAPTER 5: ANNUAL PERFORMANCE REVIEW FOR FY 2013-14
5.1 As per Regulation 8.2 of the JKSERC (Multi Year Distribution Tariff)
Regulations, 2012 and as amended vide Commission’s Order dated 2 July 2013,
the Licensee shall submit the Annual Performance Review Report as part of
annual review on actual performance as per the timelines specified to assess the
performance vis-à-vis the targets approved by the Commission at the beginning
of the Control Period. The relevant provision has been summarized below:
“8.2 The Licensee shall submit the Annual Performance Review Report as part of
annual review on actual performance as per the timelines specified to assess the
performance vis-à-vis the targets approved by the Commission at the beginning
of the Control Period. This shall include annual statements of its performance
and accounts including the latest available audited/actual accounts and the tariff
worked out in accordance with these Regulations.
Provided that truing up of expenses for any year shall be carried out on the basis
of the audited annual accounts for the year subject to prudence check by the
Commission.”
5.2 Based on above, the Petitioner submitted the Petition for APR for FY 2013-14
based on actual for FY 2013-14 for first nine (9) months and projections for
remaining period.
5.3 As the FY 2013-14 is already over, the Commission directed the Petitioner to
submit details of actual sales, losses and power purchase along with actual costs
incurred during FY 2013-14. However, the Petitioner failed to do so informing
that the actual data will be submitted at time of True Up.
5.4 Thus, the Commission provisionally approves the APR for FY 2013-14 in this
Tariff Order, however it has not allowed any incentive/ penalty for gains/ losses
on over/under achievement of targets for uncontrollable parameters as the review
is based on provisional data. The sharing of gains/ losses will be determined at
the time of True up based on audited annual accounts for the year and submission
of actual data.
5.5 This section summarizes the projections for annual performance review for
FY 2013-14 as submitted by Petitioner and as approved by the Commission.
Energy Sales
Petitioners Submission
5.6 JKPDD-D caters to a diverse consumer mix constituting of domestic,
commercial, industrial and agriculture consumers. JKPDD-D submitted that at
the end of FY 2012-13, the total number of consumers catered by JKPDD-D
system was 14,90,696 having a total connected load of 2324 MW.
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5.7 Based on the actual of the first nine (9) months of the period and projections for
remaining period under review i.e. FY 2013-14, a further 141809 number of
consumers and connected load of 210 MW have been added during the period
under review.
5.8 The Compounded Annual Growth Rate (CAGR) for the period from FY 2008-09
to FY 2012-13 has been projected to be 3.0%. Besides, the Petitioner submitted
that 97088 number of unregistered consumers have been regularized during the
period ending FY 2013-14. The annual growth in the number of consumers and
the connections regularized during the period under review as submitted by
Petitioner has been summarized in following table:
Table 16: Consumer Data and Metering Status
Annual Growth (Nos.) Connections Regularised (Nos.) Total consumers added (Nos.)
44721 97088 141809
5.9 As per the J&K Electricity Act, 2010 and Commission’s Order dated 26th
April,
2012, JKPDD-D had to meter all existing consumers by end of June 2013.
However, due to inherent challenges in metering such consumers, JKPDD-D
submitted that it would be able to achieve 100% consumer metering by end of the
MYT control period i.e. FY 2015-16. Even though it is committed to meter all
consumers in the State; it faces several difficulties in doing so such as presence
of un-registered consumers, replacement of defective/faulty meters, reluctance on
the part of existing un-metered consumers, etc. Further, JKPDD-D also floated
several tenders; however there were either no responses or misleading response
on the above tenders.
5.10 Meanwhile, the Commission directed the Petitioner to submit compliance report
and detailed metering plan for 100% consumer and system metering complete
with financing, procurement and monitoring plans on the specified formats of the
Commission duly approved by the Govt. in light of the directives of the
Commission vide Order dated 25th
April 2013. On Petitioner’s failure to do so,
the Commission initiated Suo-moto proceedings in this regards.
5.11 Accordingly, the Petitioner revised the metering plan and submitted the same
along with the APR Petition for FY 2013-14 on 28th
February 2014. The revised
metering plan as submitted by Petitioner in the APR petition is summarized
below:
Table 17: Proposed Metering Plan submitted in APR Petition
Consumer category FY 2013-14
( RE)
FY 2014-15
( Proj)
FY 2015-16
( Proj)
Domestic 95139 338702 555804
Non Domestic/ commercial 14112 27374 50811
Agriculture 373 2824 4975
Public street lights 4 64 110
LT Public water Works 161 239 539
Total 1,09,789 3,69,203 6,12,239
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5.12 Based on the proposed metering plan, the projected number of consumers and
connected load for each consumer category as approved in the MYT Order and
revised projected now has been summarized in following table.
Table 18: Projected Consumers (Nos) and Connected Load (MW) for FY 2013-14
Sl. No. Consumer
Category
No of consumers Connected Load (MW)
App. by
JKSERC in
MYT
Order
Proj. in
APR by
JKPDD-D
App. by
JKSERC in
MYT
Order
Proj. in
APR by
JKPDD-D
1 Domestic
- Metered 769055 705629 656 773
- Unmetered 716,861 687250 538 421
2 Non Domestic / Commercial
- Metered 118778 119018 216 197
- Unmetered 44,794 68848 39 62
3 Agriculture/Irrigation.
- Metered 12856 11766 83 85
- Unmetered 3733 6775 46 48
4 State / Central Govt. Departments.
- Metered 9812 10,192 192 188
- Unmetered - - - -
5 Public Street Lighting
- Metered 93 107 4 5
- Unmetered 153 153 6 6
6 LT industrial Supply
- Metered 19355 19950 245 251
- Unmetered - - - -
7 HT Industrial Supply
- Metered 695 764 298 299
- Unmetered - - - -
8 HT-PIU Industrial Supply
- Metered 16 13 37 33
- Unmetered - - - -
9 LT Public Water Works
- Metered 1,253 1194 38 46
- Unmetered 606 644 33 43
10 HT Public Water Works
- Metered 127 157 19 19
- Unmetered - - - -
11 General Purpose / Bulk Supply
- Metered 138 145 47 57
- Unmetered - - - -
Grand Total 16,98,325 16,32,605 2498 2533
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5.13 As per the Regulation 16 of the JKSERC (Multi Year Distribution) Regulation
2012, energy sale is an uncontrollable parameter. The metered energy sales for
the period under review i.e. FY 2013-14 is based on the actual sale of energy
during the first nine (9) months of the period under review.
5.14 The sales in the un-metered category as per the Regulation 17 of the above
mentioned regulations have been assessed by working out the units backwards
from the amount billed on connected load basis in each slab. This has enabled the
department to assess the unmetered sales in a realistic manner particularly in the
domestic category and commercial category where the unmetered sales are
significant. The sales in the domestic unmetered category have shown a sharp
increase on account of the revised flat rates, load revisions and drive for
regularization being undertaken by the Petitioner.
5.15 The Petitioner submitted that with rationalization of tariff structure by the
Commission, addition of consumers, addition in the connected load and vigorous
enforcement the energy sales have increased significantly. The actual energy sold
during FY 2012-13 was 5160 MU, while the total energy sales estimated during
the period under review i.e. FY 2013-14 is 5849 MU i.e. an increase of approx.
12.69% from actual energy sales during FY 2012-13.
5.16 The category wise energy sales as approved by the Commission in MYT Order
and revised projected now have been summarized in following table.
Table 19: Projected Energy Sales (MU) for FY 2013-14
Sl. No. Consumer Category App. by JKSERC
in MYT Order
Proj. in APR by
JKPDD-D
1 Domestic
- Metered 1055 1390
- Unmetered 1003 1404
2 Non Domestic / Commercial
- Metered 416 305
- Unmetered 130 218
3 Agriculture
- Metered 204 229
- Unmetered 90 89
4 State / Central Govt. Department
- Metered 522 477
- Unmetered - -
5 Public Street Lighting
- Metered 15 18
- Unmetered 21 21
6 LT industrial Supply
- Metered 378 294
- Unmetered - -
7 HT Industrial Supply
- Metered 647 626
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Sl. No. Consumer Category App. by JKSERC
in MYT Order
Proj. in APR by
JKPDD-D
- Unmetered - -
8 HT-PIU Industrial Supply
- Metered 117 119
- Unmetered - -
9 Public Water Works
LT Public Water Works
- Metered 184 204
- Unmetered 226 191
HT Public Water Works
- Metered 101 95
- Unmetered - -
10 Bulk Supply
Metered 154 169
Unmetered - -
Grand Total 5263 5849
Commissions Analysis
5.17 The J&K Electricity Act 2010 mandated supply of electricity to all consumers
through correct meters only within a period of two years from the date of
notification of the Act. This period expired on 28th
of April 2012. The relevant
provision of the J&K Electricity Act 2010 has been reproduced below:
“49. Use, etc., of meters.––(1) No licensee shall supply electricity, after the expiry
of two years from the commencement of the Act, except through installation of a
correct meter in accordance with the regulations to be made in this behalf by the
Commission:
….
Provided further that the Commission may, by notification, extend the said period
of two years for a class or classes of persons or for such area as may be specified
in that notification.”
5.18 The JKPDD-D through its petition dated 25th
April 2012, citing its inability in
accomplishing installation of 100% correct meters at all levels and to all persons by
28th
April 2012 (being the cut-off date as per Section 49 (1) of the J&K Electricity
Act 2010), requested the Commission to extend the period. The Commission vide
its Order dated 26th
April 2012 and in exercise of the powers vested in it under the
second proviso to Section 49 (1) of the Act extended the period for supply of
electricity, beyond the expiry of two years from the commencement of the Act for
installation of correct meters upto 30th
June, 2013.
5.19 The Commission immediately after issuance of the above mentioned notification
dated 26th
April 2012 directed the Development Commissioner (Power), Power
Development Department vide its Letter No JKSERC/19/94 dated 3rd
May 2012 to
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submit a detailed plan for achieving 100% consumer metering including status of
category-wise metering and status of procurement of energy meters. However, the
Petitioner failed to submit any response to the Commission.
5.20 Due to inherent challenges in metering such consumers, JKPDD-D submitted that
it would be able to achieve 100% consumer metering by end of the MYT control
period i.e. FY 2015-16. The Commission in its MYT Order dated 25th
April 2013
directed the Petitioner to seek approval from the State Govt. for the metering plan
and also submit detailed milestones along with other requisite details for achieving
100% metering by the end of FY 2015-16.
5.21 The Commission again notified the Petitioner on several occasions about
compliance to the timelines, but due to nonchalant attitude of the Petitioner the
deadlines were not adhered to. Further, the Commission also directed the Petitioner
to submit compliance report and detailed metering plan for 100% consumer and
system metering complete with financing, procurement and monitoring plans on
the specified formats of the Commission duly approved by the Govt. and in light of
the directives of the Commission vide Order dated 25th
April 2013. On Petitioner’s
failure to do so, the Commission initiated Suo-moto proceedings in this regards.
5.22 Meanwhile, the Petitioner continued to supply varying data to the Commission
related to projected metering plan. The data submitted was highly inconsistent and
could not be considered on record. The following table provides an abstract of the
metering plans submitted before the Commission from time to time by JKPDD-D
for completion of 100% metering by the end of FY 2015-16.
Table 20: Summary of the Metering Plans and Timelines Proposed by Petitioner
Sl. No. Time of Submission Consumer Metering Proposed (No’s)
FY 2013-14 FY 2014-15 FY 2015-16 Total
1
25.04.2012 (Request for
extension in deadlines for 100%
metering prescribed in Section
49 (1) of Act)
3,15,570
- - 7,85,961
(Ending
March, 2013)
4,70,391
(Ending June,
2013)
2 30.11.2012 (In MYT Petition
2013-14) 2,30,274 3,74,859 5,58,723 11,63,856
3
20.11.2013 (In response to
Commission’s Order in Suo-
moto proceedings)
4,13,572 2,95,866 3,87,935 10,97,373
4
17.02.2014 (In response to
Commission’s Order in Suo-
moto proceedings)
2,56,209 5,07,380 3,39,877 11,03,466
5 17.02.2014 (PDD, APR &
Tariff Petition) 1,10,089 3,58,270 6,10,766 10,79,125
6
25.02.2014 (In response to
Commission’s Order in Suo-
moto proceedings)
1,09,789 3,26,962 7,69,643 12,06,394
7 28.02.2014 (Final APR petition
for FY 2013-14) 1,09,789 3,69,203 6,12,239 10,91,231
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 52
5.23 The huge variations in the submissions of the Utility from time to time, as shown
above, shows lack of seriousness on the part of the Utility towards the most
important power sector reforms program i.e. energy metering in the State which
has highest T&D losses in the country. Besides, even the power supply in the State
except through installation of correct meters after June, 2013 is in contravention to
Section 49(1) of the Electricity Act, 2010 which has serious implications both for
JKPDD-D and the consumers.
5.24 After giving a final opportunity to the Utility, the metering plan with revised
timelines was submitted before the Commission on 18th
April 2014 and same has
been adopted by the Commission for purposes of monitoring its implementation
vide its Suo-moto order dated 21st April 2014. The following table summarizes the
actual consumer data and metering status taken on record by the Commission and
metering plan for the MYT period i.e. FY 2013-14 to FY 2015-16.
Table 21: Actual Consumer Data and Metering Status and adopted Metering Plan as per
JKSERC Suo-moto Order dated 21st April 2014
Sl. No. Particulars Nos.
Actual consumer data and metering status
A. Total No of installations ending 3/2013 14,90,696
B. No of Installation with correct electronic meters 6,45,617
C. No of Installation with E/M meters to be replaced 1,12,901
D. Number of the Un-metered installation [A-(B+C)] 7,32,178
E. Additional number of installation expected 3,61,418
F. Total number of meters required for 100 % consumer
metering [F=C+D+E] 12,06,497
Approved Metering Plan for MYT Period
1 FY 2013-14 (already installed) 1,12,965
2 FY 2014-15 4,80,932
3 FY 2015-16 6,12,600
Total [ 1+2+3] 12,06,497
5.25 The Petitioner also submitted revised timelines for achieving 100% metering by
end of FY 2015-16 and same has also been adopted by the Commission in its Suo-
moto Order dated 21st April 2014.
Table 22: Timelines for 100% Metering adopted by Commission vide Order dated 21st April 2014
Sl. No. Connection Type
Approved by Commission
vide notification No.
JKSERC/18 of 2012 dated
26th
April 2012
Proposed by Petitioner
now and adopted by
Commission vide
Order dated 21st April
2014
A All HT Connections 30 June 2012 31 October 2014
B All EHT Connections 30 June 2012 31 October 2014
C All Govt. Connections, Kashmir
Region 31 July 2012 30 June 2014
D All Govt. Connections, Jammu Region. 31 July 2012 30 June 2014
E LT Connections, R-APDRP Areas 31 August 2012 31 December 2015
F LT Connections (Except Domestic ), 31 January 2013 31 March 2016
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 53
Sl. No. Connection Type
Approved by Commission
vide notification No.
JKSERC/18 of 2012 dated
26th April 2012
Proposed by Petitioner
now and adopted by
Commission vide
Order dated 21st April
2014
Non R-APDRP Areas
G LT Connections (Domestic ), Non R-
APDRP Areas 30 June 2013 31 March 2016
H DT Metering, R-APDRP Areas 31 July 2012 31 December 2014
I All HT & EHT Feeders 30 November 2012 31 December 2014
5.26 The Commission while adopting the revised time lines as submitted by the
Petitioner for achieving 100% correct consumer and system metering in the state
by end of March, 2016, is of the view that mere extension in the time lines alone is
not going to be sufficient for implementation of the metering plan. The
Commission, therefore, directs that no further delay in achieving 100% current
consumers metering would be allowed beyond March, 2016. Any such delay would
not only invite penal action against the Utility i.e the JKPDD-D and would also call
for suitable action from the Commission declaring supply of electricity to
unmetered consumers as illegal in terms of the provisions of Section 49(1) of J&K
Electricity Act 2001 and Commission’s orders issued from time to time.
5.27 The Commission directs JKPDD-D to establish and develop authentic third party
meter testing mechanism in the State as is required in terms of Section 44 of the
Act read with Chapter A5 of the Jammu and Kashmir State Electricity Supply
Code, 2011 and report compliance to the Commission with the next Annual
Performance Review Petition.
5.28 Further, the Commission also directs that a comprehensive mechanism shall be
evolved by the Respondents for closely monitoring the implementation of proposed
metering plan at various levels particularly at the level of Administrative
Department. The province-wise/ Circle-wise/Division-wise progress report in the
light of the revised action plan submitted by the Utility shall be submitted to the
Commission on a quarterly basis for review.
5.29 On scrutiny of the data on category wise number of consumers submitted by the
Petitioner, the Commission found that the data submitted by the Petitioner was
largely consistent with the Suo-moto Order dated 21st April 2014. Thus, against a
target of installing 112965 meters during FY 2013-14, 109789 account for new /
regularized connections and balance 3176 as replacement of electro mechanical
/damaged meters. Likewise for FY 2014-15 against a target of installing 480932
meters, 369203 is proposed to be for new / regularized consumers and balance by
way of replacement of electro mechanical/ damaged meters. Therefore, the
Commission provisionally approves the number of consumers, connected load and
energy sales as per the submission of the Petitioner. The Commission clarifies that
no true up shall be allowed in the absence of reliable, verified and audited data.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 54
5.30 Accordingly, number of consumers, connected load and energy sales for FY 2013-
14 as approved by the Commission have been summarized in following table:
Table 23: Approved number of consumers, connected load (kW) & Energy Sales (MU) for FY 2013-14
Consumer Category Consumers
(Nos.)
Connected
Load (MW)
Energy sales
(MU)
Domestic
Metered 7,05,629 773 1,390
Un-metered 6,87,250 421 1,404
Non - Domestic/ Commercial
Metered 1,19,018 197 305
Un-metered 68,848 62 218
Agriculture
Metered 11,766 85 229
Un-metered 6,775 48 89
State/ Central Govt. Departments 10,192 188 477
Public Street Lighting
Metered 107 5 18
Un-metered 153 6 21
LT Industrial Supply
Metered 19,950 251 294
Un-metered 0 0 0
HT Industrial Supply 764 299 626
HT PIU 13 33 119
LT Public Water Works
Metered 1,194 46 204
Un-metered 644 43 191
HT Public Water Works 157 19 95
Bulk Supply 145 57 169
TOTAL 16,32,605 2,533 5,849
5.31 The Commission observes that in past three years i.e. from FY 2010-11 onwards,
the JKPDD-D has been able to achieve approx. 28% increase in number of
consumers and approx. 56% in connected load. This can be attributed to the
intensive efforts undertaken by the JKPDD-D to regularize unauthorized
consumers and to revise the connected load of the existing consumers in the State.
The Commission appreciates the efforts undertaken by the JKPDD-D but stresses
that these efforts need to be fast tracked so as to bring the left over ill legal
consumers within the fold of the Utility and achieve 100% consumer metering in
the State by end of FY 2015-16 and in the process bring about a significant
reduction in the level of AT&C losses.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 55
Losses and Energy Requirement
Petitioners Submission
5.32 During FY 2013-14, the JKPDD-D reported that the distribution losses based on
actual data for nine (9) months of FY 2013-14 and projections for remainder year
are reported to be 49.5%. The JKPDD-D has achieved loss reduction of approx.
5% during FY 2013-14 from actual losses reported for FY 2012-13 of 54.28%.
5.33 The JKPDD-D submitted that it has initiated several steps to reduce the distribution
losses which have historically remained very high. The department has constituted
special Enforcement Team in addition to the routine inspection squads at all levels.
The teams regularly conduct inspections of all the categories of consumers. During
the inspections the illegal connections, defective energy meters, illegal hooking,
load in use as against the sanctioned load, incidences of under billing, inspection of
capacitors etc., are identified and it is ensured that the defaulters are dealt under
rules. The department is taking all the possible administrative and technical
measures to reduce the distribution loss and the results during the period are very
encouraging. The distribution loss level achieved during FY 2013-14 against the
approved target in the MYT Order dated 25th
April 2013 has been summarized
below.
Table 24: Projected Distribution losses for FY 2013-14 (%)
Particulars
FY 2012-13 FY 2013-14
Actual reported
now by JKPDD-D
App. by JKSERC in
MYT Order
Proj. in APR by
JKPDD-D
Distribution Loss (%) 54.28% 43.0% 49.5%
5.34 In addition to above, the Petitioner submitted that estimated inter-state and intra-
state transmission losses should be approx. 3.6% and 4.0%, respectively which are
same as approved by the Commission in the MYT order dated 25th
April 2013 and
same has been summarized in the following table.
Table 25: Projected Inter-State and Intra-State Transmission Loss for FY 2013-14 (%)
Particulars App. by JKSERC in MYT
Order Proj. in APR by JKPDD-D
Inter-state transmission loss 3.6% 3.6%
Intra-state transmission loss 4.0% 4.0%
5.35 The projected energy requirement at the transmission periphery (within State)
during FY 2013-14 based on revised energy sales and estimated distribution and
intra-state transmission losses has been summarized in the following table.
Table 26: Projected Energy Requirement (MU) for FY 2013-14
Sl. No. Description Submitted now by
Petitioner
1 Energy Sales(MU) 5,849
2 Distribution Losses (%) 49.50%
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 56
Sl. No. Description Submitted now by
Petitioner
3 Total Energy required at Dist. Periphery(MU) 11,587
4 Intra-State Transmission losses (%) 4.00%
5 Total Energy Requirement (MU) at
Transmission Periphery 12,070
Commissions Analysis
5.36 The Commission views that even though the JKPDD-D has brought down losses in
last two-three years, the T&D losses in the State are still very high. Further, the
Commission noted with concern that JKPDD-D has repeatedly failed to achieve the
target for loss reduction as set out by the Commission in its previous Tariff Orders.
5.37 The Commission in its MYT Order for period from FY 2013-14 to 2015-16 dated
25th
April 2013 had set the target for T&D loss of 45.26% for FY 2013-14 which
included 43.0% of distribution losses and 4.0% of intra-state transmission losses.
The targets for T&D losses were approved after taking into consideration the
JKPDD-D’s commitment for metering and implementation of Central Government
assisted R-APDRP scheme in the State. In view of above, the Commission directs
the JKPDD-D to make serious efforts to achieve the targets set out for reduction in
losses and any inefficiency on account of the licensee should not be passed on to
the consumers.
5.38 Thus, the Commission approves the same aggregate T&D loss for FY 2013-14 i.e.
45.26% (corresponding to distribution loss of 43.0% and intra-state transmission
loss of 4.0%) and any additional power purchase to meet the T&D losses over and
above the target loss level has been disallowed by the Commission.
5.39 In addition, the Commission has approved the inter-state transmission losses as per
the average transmission losses for northern region during FY 2013-14 as per the
report of Northern Region Load Despatch Centre (NRLDC). Accordingly, the
Commission has approved inter-state transmission losses at 3.6% for FY 2013-14.
Table 27: Approved Distribution and Transmission Losses FY 2013-14 (%)
Particulars Submitted now by
Petitioner
Approved now by
JKSERC
Distribution Loss (%) 49.50% 43.00%
Intra-state Transmission loss (%) 4.0% 4.0%
Inter-state Transmission loss (%) 3.6% 3.6%
5.40 Based on the approved energy sales, distribution loss and intra-state transmission
loss, the approved energy requirement at transmission periphery (within state) for
FY 2013-14 has been summarized in the following table.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 57
Table 28: Approved Energy Requirement for FY 2013-14 (in MU)
Particulars Submitted now by
Petitioner
Approved now by
JKSERC
ENERGY REQUIREMENT 0
Energy Sales 5,849 5,849
Add: Distribution Loss (%) 49.5% 43%
Distribution Loss (MU) 5,738 4,409
Energy Req. @ Dist. periphery 11,587 10,258
Add: Intra-state Trans. Loss (%) 4% 4%
Intra-state Trans. Loss (MU) 483 427
Energy Req. @ Trans. Periphery (MU) 12,070 10,685
Power Purchase Quantum
5.41 Power purchase expenses are the single largest component in the ARR, which form
approximately 80% of the total revenue requirement for a year. Hence, it is
imperative that this element of cost is estimated with utmost care and prudence.
The Commission has exercised due caution in estimating power purchase cost of
JKPDD-D for
FY 2013-14.
Petitioner’s Submission
5.42 JKPDD-D submitted that the energy requirement for the State during FY 2013-14
has been met from following sources:
(a) Power Purchase from JKSPDC
(b) Power Purchase from CPSUs (including free power from select stations)
(c) Power Purchase from other sources (including UI/ bilateral sources/
banking arrangements, etc)
5.43 JKPDD-D stated the energy available from own and JKSPDC stations during
FY 2013-14 has been estimated on the basis of actual generation during the first
nine (9) months and projections for remaining period. Accordingly, the total energy
available from own generating stations and JKSPDC during FY 2013-14 has been
projected as 2381 MU.
5.44 Further, JKPDD-D also has firm allocated share in Central Generating Stations
(CSGs) of NTPC Ltd, NHPC Ltd, Tehri Hydro Development Corporation (THDC),
Satluj Jal Vidyut Nigam Limited (SJVNL) and Nuclear Power Corporation Limited
(NPCIL). In addition, some power is also available from unallocated power from
CSGs during the year. JKPDD-D has considered the firm allocation of power and
unallocated share from different plants of CGS based on the actual for the first nine
(9) months and projections for remaining period for estimating energy availability
from CGSs. Accordingly, the Petitioner has projected net energy availability from
CGSs (through long term power purchase) during FY 2013-14 as 9621 MU.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 58
5.45 In addition to above, JKPDD-D has also entered into banking arrangements with
the neighboring states and has banked certain quantum of surplus energy available
in the summer/monsoon months. Estimated energy banked in during FY 2013-14
was 856 MU and energy banked out is also considered as 856 MU. Thus, estimated
Net Banking during FY 2013-14 has been assumed as zero which is as per the
approach followed by the Commission in the past. Further, during FY 2013-14, the
JKPDD-D has purchased energy on short term basis to meet shortfall in energy
requirement. JKPDD-D purchased 347 MU and 83 MU from IEX and NVVN,
respectively during FY 2013-14.
Renewable purchase Obligation (RPO)
5.46 In addition to above, as per the provisions of the JKSERC (Renewable Power
Purchase Obligation, its compliance and REC Framework implementation)
Regulation, 2011, JKPDD-D has to meet Solar RPO target of 0.25% of energy
requirement and non-solar RPO target of 4.75% of energy requirement during
FY 2013-14. Based on the estimated energy requirement, the RPO target for solar
has been projected as 31 MU and for non-solar as 590 MU. The JKPDD-D
submitted it does not have any grid connected solar tie up as yet due to non
availability of the grid connected solar in the state. However, the department is
trying for a solar tie up with neighboring state. In case of non solar RPO target, the
JKPDD-D submitted it has met the target to the extent non-solar RE power
available from mini/small hydro stations in the state. Accordingly, Petitioner
submitted that it has met non-solar RPO target of 254 MU during FY 2013-14
against total RPO target estimated at 621 MU.
5.47 Based on above, JKPDD-D has submitted that total energy available during
FY 2013-14 from all sources is estimated at 12432 MU. Considering inter-state
transmission losses, the energy available at transmission periphery during FY
2013-14 is projected at 12070 MU.
Commissions Analysis
5.48 As mentioned in the Petitioner’s submission, JKPDD-D sources power from own
sources, state owned generating company namely JKSPDC, allocated/ unallocated
share in CGSs, banking arrangement, short term purchase through UI, and any
other source.
5.49 In order to approve the energy availability from JKSPDC stations, the Commission
provisionally approves the estimates submitted by the Petitioner which is subject to
true up based on audited data. Accordingly, the Commission approves net energy
available from JKSPDC to be 2381 MU for FY 2013-14.
5.50 The energy availability from CGS’s stations including NTPC, NHPC, NPCIL,
PTC, etc has been estimated on the basis of long term allocated share to JKPDD-D
from these stations along with proportion of un-allocated share available during
past two years. The average availability from these stations has been worked out,
and accordingly, the Commission approves energy available from CPSUs to be
9621 MU for review period of FY 2013-14. This is subject to true up based on
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 59
audited data.
5.51 The Commission has considered the actual power purchased from short-term
purchases from NVVN and IEX during FY 2013-14 in accordance with the
Regulation 19 (d) of the JKSERC (Multi Year Distribution Tariff) Regulations,
2012 which states as follows:
“If there is a short term requirement of power by the Distribution Licensee over
and above the quantum as approved by the Commission and such requirement is
on account of any factor beyond the control of the Licensee (shortage/non-
availability of fuel, snow capping of hydro resources inhibiting power generation
in sources stipulated in the plan, unplanned/forced outages of power generating
units or acts of God), then the cost shall be directly passed on to the customer
without prior approval of the Commission.”
5.52 Accordingly, the Commission has approved power purchase from NVVN and IEX
of 430 MU during FY 2013-14.
Renewable purchase Obligation (RPO)
5.53 In addition to above, the Commission notes that even though JKPDD-D has to
procure 5% of its total energy requirement from renewable energy sources during
FY 2013-14 as per the RPO targets approved vide JKSERC (Renewable Power
Purchase Obligation, its Compliance and REC Framework implementation)
Regulations, 2011 and JKSERC Notification No. JKSERC/27 dated 5th
March
2013; the Petitioner has not completely met its RPO targets.
5.54 The estimated energy requirement for FY 2013-14 based on review of energy sales
and loss for the period has been approved by the Commission at 10685 MU.
Accordingly, the RPO target for FY 2013-14 based on obligation of 5% of energy
requirement works out to 534 MU which includes solar RPO target of 26 MU and
non-solar RPO target of 508 MU. Out of the above estimated target, the JKPDD-D
submitted it has met 254 MU of non-solar RPO target through purchase of mini/
small hydro power from JKSPDC. While the entire solar RPO target of 26 MU and
partial non-solar RPO target of 254 MU remained unmet during the year. Further,
as the FY 2013-14 was already over at the time of issue of this Order, the
Commission notes with concern that the Petitioner will be unable to achieve the
above mentioned RPO targets for the year. Hence the same has not been
considered and accounted for in power purchase computation of FY 2013-14 to the
extent of shortfall in the RPO targets.
5.55 The Commission is of the view that the objective of obligating JKPDD-D to
purchase power from renewable energy sources is a step towards long term energy
security and in case the Petitioner is unable to meet the set targets, the Commission
shall undertake appropriate penal action. However, this being first year for
implementation of MYT period and the Petitioner has submitted that it was able to
meet the non-solar RPO target partially and is making efforts to meet solar RPO
through purchase of solar power from neighboring States, the Commission has not
carried forward any liability to future years as this would lead to increase in power
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 60
purchase costs during FY 2014-15. The Commission further clarifies that in future
years the Petitioner should make all out efforts to meet RPO targets through
purchase of solar/ non-solar power or RECs and any non-compliance shall invite
penal action.
5.56 In order to make the compliance with RPO targets more effective, the Commission
directs the JKPDD-D to open a separate account for meeting the annual fixed
obligation of renewable energy, which includes carry forward balances and
purchase of RECs to meet shortfall, if any. This is necessary to ensure the
compliance of the relevant regulations. JKPDD-D shall review the position with
the Nodal Agencies periodically and report the progress to the Commission.
Further, the utilization of the funds created in this account shall be decided by the
utility in consultation with the Commission as per the relevant regulations.
Disallowance of power purchase quantum
5.57 As stated in Para 5.38 of this Order, the Commission has disallowed additional
power purchase over and above the target loss level of 43.0% by the Petitioner
during FY 2013-14. Disallowed units of power purchase works out to 1348 MU.
Likewise shortfall in RPO targets has been disallowed. The Utility is totally
dependent on the Government for its power purchase budget and the requirement
for additional power purchase has not been supported by additional budgetary
provisions by the Government for FY 2013-14.
5.58 Based on the above analysis and considering inter-state transmission losses at
3.60% for FY 2013-14, the projected and approved energy availability from all
sources during FY 2013-14 has been summarized in the following table:
Table 29: Source-wise Projected and Approved Energy Availability during FY 2013-14 (in MU)
Source
Submitted
now by
Petitioner
Approved now
by JKSERC
A. State-owned Stations
JKPDD - Own Stations
Diesel 0 0
Sub-Total (A) 0 0
B. JKPDC – Thermal
Kalakote 0 0
Gas Turbine-I 0 0
Gas Turbine-II 0 0
Sub-Total (B) 0 0
C. JKPDC – Hydel
LJHP 542 542
USHP-I 94 94
USHP-II 218 218
Ganderbal 23 23
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 61
Source
Submitted
now by
Petitioner
Approved now
by JKSERC
Chenani-I 83 83
Chenani-II 7 7
Chenani-III 16 16
Sewa-III 8 8
Karnah 5 5
Sumoor 0 0
Bazgo 0 0
Hunder 1 1
Iqbal Bridge 4 4
Sanjak 1 1
Badherwah 3 3
Pahalgam 5 5
Haftal 1 1
Marpachoo 1 1
Igo-Mercellong 2 2
Stakna 0 0
Matchil 0 0
Sub-Total (C)* (254 MUs reflected in non solar RPO) 1014 1014
Baglihar (D) 1367 1367
Total State Generation (A+B+C+D) 2381 2381
E. NTPC
Anta(G)
218 218 Anta(LNG+L)
Auriaya(G) 178 178
Auriaya(LNG+L)
Dadri(G) 322 322
Dadri(LNG+L)
Unchahar-I 104 104
Unchahar-II 249 249
Unchahar-III 105 105
Rihand-I 548 548
Rihand-II 699 699
Rihand-III 273 273
Singrauli 117 117
Farraka 102 102
Talcher 0 0
Kahalgaon-I 225 225
Kahalgaon-II 600 600
Nctp-2 67 67
Korba-I 98 98
Korba-III 42 42
Mouda 19 19
Sipat-I 155 155
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 62
Source
Submitted
now by
Petitioner
Approved now
by JKSERC
Sipat-II 63 63
Vindhyachal-I 78 78
Vindhyachal-2 61 61
Vindhyachal-3 63 63
Vindhyachal-4 42 42
Sub-Total (E) 4428 4428
F. NHPC
Salal 724 724
Free power 387 387
Tanakpur 31 31
Chamera-I 88 88
Chamera-II 113 113
Chamera-III 80 80
Uri-I 506 506
Free power 277 277
Uri-II 104 104
Free power 36 36
Dulhasti 245 245
Free power 278 278
Dhauliganga 23 23
Sewa-II 30 30
Free power 51 51
Nimao Bazgo 93 93
Free power 10 10
Chutak 202 202
Free power 30 30
Sub-Total (F) 3308 3308
SJVNL(G) 562 562
THDC (H) 236 236
THDC Koteshwar (I) 84 84
J. PTC India Ltd.
PTC(Tala) 64 64
PTC(BHEP) 77 77
Sub-Total (J) 141 141
K. NPCIL
NAPS 223 223
RAPP 3&4 271 271
RAPP 5&6 237 237
TAPS 3&4 74 74
KAPS 23 23
Sub-Total (K) 828 828
JHAJJAR (L) 35 34
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JKSERC Page 63
Source
Submitted
now by
Petitioner
Approved now
by JKSERC
M. Total - Outside State sources (E+F+G+H+I+J+K+L) 9621 9621
N. Other (incl. ST Purchase)
NVVN/IEX 430 430
Renewable* (254 MUs of non solar RPO already reflected
in the energy supplied by JKSPDC) 0 0
UI (-)/(+) 0 0
Sub-total (N) 430 430
Banking (O) 0 0
Power purchase disallowed (P) 0 -1348
Gross Energy Availability (M + N +O – P) 12,432 11,084
Less: Inter-state Transmission Loss @ 3.6% 362 399
Net Energy Availability 12,070 10,685
*Note: 2381 MUs of JKSPDC includes 254 MUs of Non Solar RPO targets
Power Purchase Cost
Power Purchase from JKSPDC
Petitioner’s Submission
5.59 Based on the actual billing of JKSPDC stations for the first nine (9) months and
projections for remaining period of FY 2013-14, Petitioner has estimated power
purchase cost from JKSPDC generating stations for FY 2013-14 as Rs. 485.73 Cr.
Commission’s Analysis
5.60 The Commission has approved the cost of power purchased from JKSPDC stations
on the basis of approved energy quantum and the approved tariff as per the
JKSPDC’s Tariff Order for FY 2013-14. The approved cost of power purchased for
FY 2013-14 works out to Rs 474.24 Cr at an average rate of Rs. 1.99 per unit.
Power Purchase from CGSs and Other sources
Petitioner’s Submission
5.61 The cost of the power purchased from central generating stations of NTPC, NHPC,
NPCIL, other long term sources and short term purchases for FY 2013-14 has been
estimated based on the actual billing for the first nine (9) months and projections
for remaining period. Accordingly, the Petitioner has submitted that the cost of
power purchase from CGSs and short term sources for FY 2013-14 is projected to
be Rs. 3053.01 Cr. This cost is excluding water usage charges from NHPC stations,
which have been projected separately.
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Commission’s Analysis
5.62 The Commission has approved cost of power purchase based on revised estimates
submitted by the Petitioner after analysis of the power purchase bills submitted by
the Petitioner. Accordingly, the Commission approves cost of power purchase from
CGSs as Rs. 2907.18 Cr at an average rate of Rs. 3.02 per unit. This includes
reactive energy (RE) charges of Rs. 12.36 Cr and surcharge pertaining to current
year of Rs. 132.19 Cr for FY 2013-14. In addition, the Commission approved
Rs. 147.79 Cr as power purchase cost from short term sources (NVVN/IEX) during
FY 2013-14. Thus, total cost of power purchase from CGSs including cost of
purchase from short term sources works out to Rs. 3054.97 Cr.
Inter-state transmission Charges
Petitioner’s Submission
5.63 Inter-state transmission charges payable to PGCIL are based on the total capacity
allocation in transmission network. JKPDD-D has a mix of firm and infirm
capacity allocation from various Central Generating Stations which is being
revised by Ministry of Power at regular intervals. Inter-state transmission charges
based on the actual billing for first nine (9) months and projections for remaining
period under review i.e. FY 2013-14 has been estimated as Rs. 335.05 Cr by
JKPDD-D.
Commission’s Analysis
5.64 The Commission approves the revised estimates of inter-state transmission Charges
as Rs. 335.05 Cr as per submission made by JKPDD-D subject to true up based on
audited accounts.
Disallowance of Power Purchase costs
5.65 As stated above in Para 5.38, the Commission has disallowed additional power
purchase over and above the target loss level by the licensee during the review
period. The disallowed units of power purchase works out to be 1348 MU for
FY 2013-14.
5.66 The cost of power purchase of units disallowed has been considered as the
approved average power purchase rate of gross power purchase from JKSPDC and
CGSs which works out to Rs. 3.11 per unit for FY 2013-14. The following table
summarizes the cost of power purchase disallowed by the Commission for the
MYT control period.
Table 30: Disallowed power purchase cost by the Commission for FY 2013-14 (Rs Cr)
Sl. No. Description UoM 2013-14
A Cost of power purchase from JKSPDC & CGSs (incl. inter-state
transmission charges) Rs Cr 3,864.26
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Sl. No. Description UoM 2013-14
B Quantum of power purchased from JKSPDC & CGSs (Gross) MU 12,432
C Average rate of power purchase Rs/KWh 3.11
D Power purchase units disallowed by the Commission MU 1,348
E Disallowed Power purchase cost (C * D / 10) Rs Cr 419.06
5.67 Based on above, the summary of power purchase cost proposed by the Petitioner
and approved by the Commission for FY 2013-14 has been presented in following
table.
Table 31: Projected and Approved Power Purchase Cost from all sources for FY 2013-14 (Rs Cr)
Particulars Submitted now
by Petitioner
Approved now
by JKSERC
Power Purchase from JKSPDC 485.73 474.24
Power Purchased from CGSs (including short term/UI) 3,053.01 3,054.97
Inter-state Transmission charges 335.05 335.05
Sub-total 3,873.79 3,864.26
Cost of power purchase disallowed 0.00 -419.06
Total Power Purchase cost 3,873.79 3,445.20 *
Power Purchase quantum (MU) 12,432 11,084
Per unit power purchase cost 3.12 3.11
* Note: This is subject to providing of additional budgetary allocation by the State Government, as the
approved allocated budget for power purchase for JKPDD-D for FY 2013-14 is Rs. 3,336 Cr only.
Water Usage Charges
Petitioner’s Submission
5.68 The Hon’ble Commission in its MYT order dated 25th
April 2013 approved
Rs. 305.65 Cr. as pass through expense on account of water usage charges payable
to JKSPDC for FY 2013-14.
5.69 In addition to above, the Petitioner submitted that the NHPC has also raised the
bills payable during the period under review on account of water usage charges
amounting to Rs. 549 Cr. including Rs. 190 Cr. for the current year and arrears for
past years for Salal, Uri, Dulhasti and Sewa generating stations. Thus, JKPDD-D
has claimed pass through of water usage charges pertaining to JKSPDC and NHPC
for FY 2013-14 as Rs. 495.65 Cr.
Commission’s Analysis
5.70 The Commission vide its Order dated 25th
April 2013 approved the reimbursement
of water usage charges payable by the Petitioner in FY 2013-14 in the light of the
orders passed by the State Water Resource Regulatory Authority, Government of
Jammu & Kashmir from time to time.
5.71 Accordingly, the Commission approves Rs.305.65 Cr as pass through expense on
account of water usage charges of JKSPDC for FY 2013-14 with the direction that
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JKSERC Page 66
the funds to discharge this liability will be provided to the utility by the
Government over and above the budgetary allocation for power purchase as
claimed by the Petitioner.
5.72 In case of water usage charges payable for NHPC stations, the Commission
directed the Petitioner to provide station-wise and monthly details of arrears of
water usage charges payable to NHPC stations for FY 2012-13 and FY 2013-14.
Any arrears pertaining to period prior to FY 2012-13 should also be provided
separately. Subsequently, the Petitioner submitted the details for water usage
charges payable for NHPC stations including arrears for past years. However, as
this Order pertains to review of FY 2013-14 only and no true up for previous years
is allowed in absence of audited data, the Commission approves the water usage
charges for NHPC stations pertaining to FY 2013-14 only which amount to
Rs 130.55 Cr.
5.73 Thus, total water usage charges approved by the Commission during FY 2013-14
works out to Rs. 436.20 Cr with the direction that the funds to discharge this
liability will be provided to the utility by the Government over and above the
budgetary allocation for power purchase as claimed by the Petitioner.
Operation & Maintenance (O&M) Expenses
Petitioner’s Submission
5.74 The Petitioner submitted that the Operation and Maintenance (O&M) expenses
comprises of employee expenses, Repair & Maintenance (R&M) expenses and
Administrative & General (A&G) expenses and the costs have been projected
separately taking into account different escalation factors.
5.75 The revised figures adopted by the state finance department for FY 2013-14 for the
current budget session of the legislative assembly have been considered for the
period under review.
Employee Expenses
5.76 The revised estimates for employee expenses for the FY 2013-14 as well as
projected expenses as submitted in MYT Petition have been summarized in
following table.
Table 32: Projected Employee Expenses for FY 2013-14 (Rs. Cr)
Particulars Submitted now
by Petitioner
Salaries 457.23
Wages 0.39
Compensation 0.40
Medical Reimbursement 1.56
Total 459.58
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Repairs & Maintenance (R&M) Expenses
5.77 The revised estimates for R&M expenses for the FY 2013-14 as well as projected
expenses as submitted in MYT Petition have been summarized in following table.
Table 33: Projected R&M Expenses for FY 2013-14 (Rs Cr)
Particulars Submitted now
by Petitioner
Maintenance & Repair 15
Machinery and Equipment 1.58
Material & Supplies 3.50
Other R&M Expenses 0.60
Total 20.68
Administrative & General (A&G) Expenses
5.78 The revised estimates for A&G expenses for the FY 2013-14 as well as projected
expenses as submitted in MYT Petition have been summarized in following table.
Table 34: Projected A&G Expenses for FY 2013-14 (Rs Cr)
Particulars Submitted now
by Petitioner
Outsourcing of upkeep 18.18
Electricity Charges 2.12
Travelling Expenses 0.64
Office Expenses 0.60
Professional & SS charges 1.10
Telephone 0.33
Amarnath Yatra 0.29
Stationery & Printing 1.10
Rent Rates & Taxes 0.33
Other Expenses 1.13
Total 25.83
Commission’s Analysis
5.79 The O&M expenses for the FY 2013-14 are approved by the Commission in
accordance with Regulation 22 of the JKSERC (Multi Year Distribution Tariff)
Regulations, 2012 and methodology approved in MYT Order dated 25th
April
2013. Accordingly, the Commission has approved separate norms for each of the
components of O&M expenses viz., Employee cost, R&M expense and A&G
expense.
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Employee expenses
5.80 As per Regulation 22.1 of the above-mentioned regulations, employee cost for ‘n’
year (EMPn) during the MYT period would be determined on the basis of norm for
employee cost (EMPb) escalated by average Consumer Price Index (CPI) inflation
rate for immediately preceding three years and includes provisions for one-time
costs such as Pay commission arrears, etc. The formula for projection of employee
cost is as follows:
EMPn = (EMPb * CPI Inflation Rate) + Provisions
Where,
EMPn = Employee expense for year ‘n’
EMPb = Employee expense as per norm
CPI Inflation = average increase in CPI for immediately preceding three years
Provisions = Provisions for uncontrollable or one-time expenses
5.81 Accordingly, the Commission has fixed the norm for employee cost on the basis of
employee cost per personnel. The actual bifurcated employee cost and number of
employees for distribution business for FY 2010-11 and FY 2011-12 has been
considered to determine employee cost per personnel for FY 2010-11 and FY
2011-12 which comes to Rs.2 lakh per employee and Rs.3.20 lakh per employee,
respectively. An average of the two is then calculated to arrive at EMPb for the
MYT period which works out to be Rs.2.60 lakh per employee. The following
table summarises the computation of norm for employee cost.
Table 35: Norm for Employee Expenses
Description Units 2010-11 2011-12
Apportioned employee cost for previous years Rs Cr 302.44 377.56
Number of employees as per Year Book for
FY 2011-12 No. 15,399 11,959
Employee cost per personnel Rs Cr/employee 0.020 0.032
EMPb Rs Cr/employee 0.026
5.82 This EMPb is then escalated by average CPI index for previous three years worked
out to be 9.50% per annum to arrive at EMPn without adjustment for provisions.
This is then multiplied by number of employees during FY 2013-14 to arrive at
employee cost for FY 2013-14. The number of employees for FY 2013-14 has
been considered based on actual employees for FY 2012-13 as per the year book
for the year. Further, the provision for 6th
Pay Commission arrears is allowed as
pass through during the MYT period in the ratio allocated to distribution business.
Accordingly, 87% of the cost pertaining to 6th
Pay Commission arrears of Rs.42.81
Cr had been allocated to distribution business for MYT period which works out to
Rs.37.38 Cr.
5.83 The number of employees is subject to true up on basis of actual bifurcated number
of employees for Distribution business of JKPDD-D. As stated in para above the
number of employees for estimation of O&M costs for FY 2013-14 has been
considered as per FY 2012-13 year book. Thus, due to unavailability of requisite
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JKSERC Page 69
data from the petitioner, the Commission has assumed the number of employees to
be same in FY 2013-14, which is subject to true up based on actual number of
employees. Based on above, the approved employee expenses for FY 2013-14 have
been summarised in following table.
Table 36: Approved Employee Expenses for FY 2013-14 (Rs Cr)
Description Units Norm 2013-14
EMPb (A) Rs Cr/employee 0.026
CPI Inflation rate (B) % 9.50%
Number of employees (C) No. 13,178
EMPn (D = A * B) Rs Cr/employee 0.028
Employee Expenses without provisions (E = C * D) Rs Cr 369.50
Arrears for 6th
Pay Commission Rs Cr 42.81
Allocated to Distribution (87% of total) (F) Rs Cr 37.38
Employee expenses with provisions (G = E + F) Rs Cr 406.88
A&G expenses
5.84 As per Regulation 22.3 of the above-mentioned regulations, A&G cost for ‘n’ year
(A&Gn) during the MYT period would be determined on the basis of norm for
A&G cost (A&Gb) escalated by average Wholesale Price Index (WPI) inflation
rate for immediately preceding three years including any past arrears/ provisions
being beyond the control of the Petitioner. The formula for projection of A&G cost
is as follows:
A&Gn = (A&Gb * WPI Inflation Rate) + Provisions
Where,
A&Gn = A&G costs for year ‘n’
A&Gb = A&G costs as per norm
WPI Inflation = average increase in WPI for immediately preceding three years
Provisions = Provisions for uncontrollable or one-time expenses
5.85 Accordingly, the Commission has fixed the norm for A&G cost on the basis of
A&G cost per personnel. The actual bifurcated A&G cost and number of
employees for distribution business for FY 2010-11 and FY 2011-12 has been
considered to determine A&G cost per personnel for FY 2010-11 and FY 2011-12
which comes to Rs.0.12 lakh per employee and Rs.0.19 lakh per employee,
respectively. An average of the two is then calculated to arrive at A&Gb which
works out to be Rs.0.16 lakh per employee. The following table summarises the
computation of norm for A&G cost.
Table 37: Norm for A&G costs
Description Units 2010-11 2011-12
Apportioned A&G cost for previous years Rs Cr 18.53 23.03
Number of employees as per Year Book for FY 2011-12 No. 15,399 11,959
A&G cost per personnel Rs Cr/employee 0.001 0.002
A&Gb Rs Cr/employee 0.002
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5.86 This A&Gb is then escalated by average WPI index for previous three years worked
out to 7.42% per annum to arrive at A&Gn without adjustment for provisions. As
the JKPDD-D has claimed no adjustments for A&G, the Commission has also not
considered any provisions for A&G cost.
5.87 The number of employees is subject to true up on basis of actual bifurcated number
of employees for Distribution business of JKPDD-D for FY 2013-14. Based on
above, the approved A&G expenses for FY 2013-14 have been summarised in
following table.
Table 38: Approved A&G Expenses for FY 2013-14 (Rs Cr)
Description Units Norm 2013-14
A&Gb (A) Rs Cr/employee 0.002
WPI Inflation rate (B) % 7.42%
Number of employees (C) No. 13,178
A&Gn (D = A * B) Rs Cr/employee 0.0017
A&G Costs (E = C * D) Rs Cr 22.15
R&M Expenses
5.88 As per Regulation 22.2 of the above-mentioned regulations, R&M cost for ‘n’ is to
be determined based on average proportion (i.e. K) of actual R&M costs of
opening Gross fixed assets (GFA) for previous years. The formula for projection of
R&M cost is as follows:
R&Mn = Kb * GFAn
Where,
R&Mn = R&M Cost for year ‘n’
GFAn = opening GFA for year ‘n’
Kb = Percentage point as norm
5.89 The Commission has estimated the ‘K’ factor by considering the average of
proportion of R&M costs of the opening GFA for FY 2010-11 and FY 2011-12.
The actual bifurcated R&M costs for JKPDD-D have been considered at
Rs.25.04 Cr and Rs.27.78 Cr for FY 2010-11 and FY 2011-12, respectively.
In case of absence of asset-wise break up of GFA and basis of segregation to
transmission and distribution business, the Commission has considered the opening
GFA for FY 2010-11 and FY 2011-12 as per its approval in previous Tariff Orders.
Further, the approved GFA for JKPDD-D as whole is bifurcated to transmission
and distribution function in the same ratio as submitted by the Petitioner i.e.26:74
ratio, respectively. Accordingly, approved GFA for FY 2010-11 and FY 2011-12
for distribution function has been considered at Rs.1,805.71 Cr and Rs.2,161.17 Cr,
respectively.
5.90 Based on above, proportion of R&M costs to opening GFA for FY 2010-11 and
FY 2011-12 works out to 1.39% & 1.29%, respectively. Thus ‘Kb’ is determined
as average of previous year’s ratios i.e. 1.34% of opening GFA for year ‘n’.
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5.91 The determination of norm for R&M cost (i.e. K factor) has been summarised in
following table.
Table 39: Norm for R&M Expenses
Description Units 2010-11 2011-12
Apportioned R&M cost for previous years Rs Cr 25.04 27.78
Approved opening GFA as per previous
Tariff Orders for JKPDD as whole Rs Cr 2,440.15 2,920.50
Proportion of GFA attributable to distribution
business % 74% 74%
Opening GFA for JKPDD-D Rs Cr 1,805.71 2,161.17
R&M Cost/ opening GFA % 1.39% 1.29%
Kb (norm) % 1.34%
5.92 The normative ‘Kb‘ factor is then multiplied by the approved opening GFA for
FY 2013-14 by the Commission for approval of Business plan for JKPDD-D to
project the R&M costs for MYT period. The approved R&M costs for the MYT
period have been summarised below.
Table 40: Approved R&M Expenses for FY 2013-14 (Rs Cr)
Description Units Norm 2013-14
Kb % 1.34%
Opening GFA for JKPDD-D as per Order dated
22nd
March 2013 for approval of Business plan for
JKPDD-D
Rs Cr 2,542.71
Approved R&M costs Rs Cr 33.97
5.93 The following table summarizes the O&M cost as proposed by the Petitioner and
as approved by the Commission for FY 2013-14:
Table 41: Projected and Approved O&M Expenses for FY 2013-14 (Rs. Cr)
Particulars Approved in
MYT Order
Submitted now
by Petitioner
Approved now
by JKSERC
Employee Expenses 375.46 459.58 406.88
Admin & General Expenses 20.10 20.68 22.15
R&M Expenses 33.97 25.83 33.97
Total 429.53 506.08 463.00
Capitalization and Gross Fixed Assets (GFA)
Petitioner’s Submission
5.94 The asset capitalization schedule for FY 2013-14 based on the various project
being undertaken has been projected as under by the Petitioner:
Table 42: Projected Capitalization Plan for FY 2013-14 (Rs. Cr)
S.No Description Approved in
MYT Order
Submitted now
by Petitioner
1 New Distribution Works 27.17 40.28
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S.No Description Approved in
MYT Order
Submitted now
by Petitioner
3 RGGVY Projects 174.23 174.23
4 R-APDRP Projects 272.95 125.00
5 REC Funded Projects 34.52 25.00
6 Others 31.68 10.00
Total 540.54 374.51
5.95 The Petitioner submitted that the opening GFA for FY 2014-14 stood at
Rs. 4744.00 Cr and based on above, the Petitioner has submitted that the closing
GFA for FY 2013-14 would be Rs. 5118.51 Cr.
Commission’s Analysis
5.96 The Commission has approved capitalization for each scheme as per the
submission by the petitioner for the FY 2013-14 subject to true up based on audited
accounts. Further, the Commission vide its Suo-moto Order dated 21st April 2014
also allowed additional capital expenditure for metering of consumers
for FY 2013-14 as Rs. 23.45 Cr. However, as the FY 2013-14 was completed at the
time of issue of Suo-moto Order, the Commission will consider this amount to be
capitalized during FY 2014-15 as per submission made by the Petitioner along with
next tariff petition. Accordingly, the Commission has provisionally approved
capitalization for FY 2013-14 as Rs. 374.51 Cr as submitted by the Petitioner
subject to the submission of audited statements at the time of true-up.
5.97 The opening GFA for FY 2013-14 has been considered as Rs. 2542.71 Cr as
approved by the Commission in MYT Order dated 25th
April 2013. This is because
the Petitioner has not submitted asset-wise details of opening of GFA for
transmission and distribution business. Further, as the audited accounts for
FY 2012-13 have not been submitted and true up for the year is not allowed, the
approved GFA as on 31st March 2013 i.e. Rs. 2542.71 Cr has been considered by
the Commission.
5.98 Based on the approved opening GFA and the approved capitalization for
FY 2013-14, the Commission approves Rs. 2917.22 Cr as closing GFA for
FY 2013-14.
5.99 The following table summarizes opening GFA, assets capitalized and closing GFA
for FY 2013-14 as projected by Petitioner and provisionally approved by the
Commission subject to the submission of audited statements at the time of true up:
Table 43: Projected and provisionally approved Capitalization and GFA for FY 2013-14 (Rs. Cr)
Particulars Approved in MYT
Order
Submitted now
by Petitioner
Approved now
by JKSERC
Opening Balance 2,542.71 4,744.00 2,542.71
Addition during the year 540.54 374.51 374.51
Closing Balance 3,083.25 5,118.51 2,917.22
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Depreciation
Petitioner’s Submission
5.100 The JKPDD-D has estimated depreciation on closing GFA for FY 2013-14 which
is funded through REC loan only. The Petitioner has applied the average
depreciation rate of 3.6% on the closing GFA to estimate the depreciation for
FY 2013-14 which works out to Rs. 6.62 Cr. This is in line with the methodology
adopted by the Commission in its MYT Order dated 25th
April 2013.
5.101 However, JKPDD-D has requested the Commission to consider entire gross fixed
asset for calculation of depreciation.
Commission’s Analysis
5.102 The Regulation 24 (b) of the JKSERC (Multi Year Distribution Tariff)
Regulations, 2012 provides that depreciation shall not be allowed on assets funded
by capital subsidies, consumer contributions or grants. However as details of
segregated assets into transmission and distribution functions of the utility and the
financing of GFA for distribution business have not been submitted separately, the
Commission has approved the depreciation on the assets funded by loan from REC
only which is in accordance with the methodology approved by the Commission in
MYT Order dated 25th
April 2013.
5.103 With regard to rate of depreciation, the Commission agrees with the Objectors, that
the Petitioner must submit asset-wise details of GFA. However, till such time the
process for segregation of assets is completed, the Commission has considered the
average rate of depreciation of 3.6% for calculation of depreciation, considering
useful asset life of 25 years and a residual value of 10% as also approved by it in
MYT Order dated 25th
April 2013.
5.104 The Commission has calculated the depreciation on the average GFA during the
year and not on the closing GFA as calculated by the Petitioner as the additions to
the GFA take place throughout the year and the average of the opening and closing
GFA gives a more realistic view.
5.105 The depreciation cost as approved in previous MYT Order, projected now by
Petitioner and provisionally approved now by the Commission subject to the
submission of audited accounts at the time of true –up for FY 2013-14 has been
summarized in following table:
Table 44: Projected and provisionally approved Depreciation Charges for FY 2013-14 (Rs Cr)
Particulars Approved in MYT
Order
Submitted now
by Petitioner
Approved now
by JKSERC
Opening Balance of assets funded
through loan (REC projects only) 168.21 159.00 159.00
Assets capitalized during the year
funded by loans (REC projects only) 34.52 25.00 25.00
Closing Balance of assets funded
through loan (REC projects only) 202.73 184.00 184.00
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Particulars Approved in MYT
Order
Submitted now
by Petitioner
Approved now
by JKSERC
Average balance 185.47 171.50 171.50
Average Depreciation rate (%) 3.60% 3.60% 3.60%
Depreciation 6.68 6.62 * 6.17
* Note: Petitioner has calculated depreciation on closing GFA i.e. Rs. 184 Cr instead of average GFA as
approved by the Commission.
Interest and Finance Charges
Interest on Loans
Petitioner’s Submission
5.106 Based on the actual loan balance, receipts and repayments during FY 2013-14 and
the interest rate of 9.39% as applied by the Commission in MYT Order, the
Petitioner has estimated interest and finance charges as Rs. 16.14 Cr for
FY 2013-14.
Commission’s Analysis
5.107 The Commission has approved the interest and finance charges on loan as per the
following approach:
(a) The outstanding balance of term liabilities as on 31st March 2013 has been
considered as per submission made by the Petitioner which is same as
approved in MYT Order dated 25th
April 2013.
(b) Additions in loan during the year have been considered as per approved
capitalization for REC funded projects i.e. Rs. 25 Cr.
(c) Rate of interest has been considered as per the average of approved rate of
interest for previous two years i.e. FY 2011-12 & FY 2012-13, which
works out to 9.39% and is same as considered in the MYT Order dated
25th
April 2013.
5.108 The Commission has calculated the interest on the average loan balance during the
year and not on the closing loan balance as calculated by the Petitioner as the
receipts and repayments take place throughout the year and the average of the
opening and closing loan balance gives a more realistic view.
5.109 Based on the above approach, the following table summarizes the interest and
finance charges approved in previous MYT Order, projected now by Petitioner and
provisionally approved now by the Commission for FY 2013-14 subject to
submission of audited accounts at the time of true-up.
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Table 45: Projected and provisionally approved Interest and Finance Charges for FY 2013-14 (Rs. Cr)
Particulars Approved in
MYT Order
Submitted now
by Petitioner
Approved now
by JKSERC
Opening Loan balance (REC funded projects only) 158.96 159.00 159.00
Additions during the year (REC funded projects only) 34.52 25.00 25.00
Actual Repayments during the year 10.00 12.05 12.05
Closing Loan balance 183.48 171.95 171.95
Average Loan Balance 171.22 165.48 165.48
Rate of interest (%) 9.39% 9.39% 9.39%
Interest on Term Loans 16.08 16.14 * 15.54
* Note: Petitioner has calculated interest on closing balance i.e. Rs. 171.95 Cr instead of average loans as
approved by the Commission.
Interest on Working Capital
5.110 The Petitioner submitted that it has claimed normative interest on working capital
for the MYT control period as per the relevant provisions of the JKSERC (Multi
Year Distribution Tariff) Regulations, 2012. The methodology considered for
estimating normative working capital requirements:
(a) O&M expenses for 1 month;
(b) Maintenance spares @ 1% of opening GFA;
(c) Receivables for 2 months
5.111 The interest on working capital has been considered at normative interest rate of
15% which is prevailing J&K Bank’s Prime Lending Rate. Accordingly, the
Petitioner has projected interest on normative working capital for FY 2013-14 as
Rs. 53.60 Cr as against Rs. 48.71 Cr approved by the Commission in MYT Order
dated 25th
April 2013.
Commission’s Analysis
5.112 The Commission has estimated the interest on normative working capital as per
Regulation 26 of the JKSERC (Multi Year Tariff Distribution) Regulations, 2012.
Accordingly, the normative working capital requirements for FY 2013-14 has been
projected on the basis of the following methodology:
(a) O&M expenses for one month;
(b) Two months equivalent of expected revenue;
(c) Maintenance spares @ 40% of R&M expenses for one month;
(d) Less: Security deposits from consumers, if any.
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5.113 Further, as per the Regulation, the rate of interest for computation of interest on
normative working capital shall be considered equal to the J&K Bank Advance
Rate as on date on which the petition for determination of tariff is accepted by the
Commission. Accordingly, the Commission has considered interest rate for
working capital as equivalent to J&K Bank Advance rate i.e. 14.75% for
computation of interest on working capital for FY 2013-14.
5.114 Accordingly, the Commission approves the interest on normative working capital
for FY 2013-14 as Rs.53.84 Cr. The interest on normative working capital as
approved in previous MYT Order, projected now by Petitioner and approved now
by the Commission for FY 2013-14 has been summarized in following table.
Table 46: Projected and Approved Interest on Working Capital for FY 2013-14 (in Rs. Cr.)
Particulars Approved in
MYT Order
Submitted now
by Petitioner
Approved
now by
JKSERC
O & M Expenses for one month 35.79 42.17 38.58
Expected Revenue for two months 287.79 314.33 325.32 *
Maintenance Spares @ 40% of R&M expenses for
one month 1.13 0.86 1.13
Normative Working Capital 324.72 357.36 365.03
Rate of Interest 15% 15% 14.75%
Interest on Working Capital 48.71 53.60 53.84
* Note: Expected revenue for two months is higher than projected as approved revenue at existing tariffs
based on approved number of consumers, connected load, energy sales and existing tariffs has been
approved as Rs. 1951.89 Cr against projected revenue of Rs. 1,777.41 Cr only.
Return on Equity
Petitioner’s Submission
5.115 The JKSERC MYT Regulations, 2012, has approved pre-tax rate of reasonable
return of 15.5% for Distribution Company. JKPDD-D does not have any normative
equity as the entire capital expenditure has been funded by way of grants, except
for a small portion of term debt. Further, the capital expenditure proposed in the
MYT period is expected to be totally funded by way of Grants from GoJK or GoI.
Hence, the Petitioner has not claimed any return on equity for FY 2013-14.
Commission’s Analysis
5.116 The Commission accepts the submission made by the Petitioner and has not
approved any return on equity for FY 2013-14.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 77
Non-tariff Income
Petitioner’s Submission
5.117 Non-Tariff Income consists of all those incomes from the business of retail supply
of power excluding the income earned from sale of power. Non-Tariff income
includes income from delayed payment charges (surcharge), rentals for meters and
other equipments, miscellaneous charges from consumers (comprising of services
rendered to consumers like reconnection/ disconnection, fuse off calls, etc.). The
Petitioner has projected non-tariff income for FY 2013-14 to be in line with that
approved in MYT Order dated 25th
April 2013 i.e. Rs. 14.09 Cr.
Commission’s Analysis
5.118 The Commission accepts the submission made by the Petitioner and provisionally
approves non tariff income for FY 2013-14 at Rs. 14.09 Cr. However, this is
subject to true up based on audited accounts for the year.
Intra-state transmission charges
Petitioner’s Submission
5.119 The Intra-state transmission charges for FY 2013-14 have been considered same as
approved by the Commission in the MYT Order for the Control Period FY 2013-14
to FY 2015-16 i.e. Rs. 105.33 Cr.
Commission’s Analysis
5.120 The Commission has considered the intra-state transmission charges as per the
ARR approved in the APR Order for FY 2013-14 for JKPDD-Transmission
business dated 20th
June 2014. Accordingly, the intra-state transmission charges for
FY 2013-14 have been approved as Rs. 102.69 Cr.
Sharing of aggregate gains/losses
Petitioner’s Submission
5.121 The Petitioner in its APR Petition for FY 2013-14 has not made any claim for
sharing of aggregate gains/ losses on account of AT&C losses being controllable in
nature as per the JKSERC (Multi Year Distribution Tariff) Regulations, 2012.
Commission’s Analysis
5.122 The Regulation 11.2 of the JKSERC (Multi Year Distribution Tariff) Regulations,
2012, provides for sharing of gains/ losses on account of controllable factors of
Aggregate AT&C loses as follows:
“11.2 The approved aggregate loss to the Distribution Licensee on account of
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 78
controllable factor of aggregate technical and commercial (AT&C) losses shall be
dealt with in the following manner:
(a) One-third of the amount of such loss may be passed on as an additional charge
in tariff over such period as may be stipulated in the Order of the Commission; and
(b) The balance amount of loss shall be absorbed by the Distribution Licensee.”
5.123 However, Regulation 8.2, as amended as per Commission’s Order dated
2nd
July 2013, states that any truing up of expenses shall be done on basis of
audited accounts only. The relevant Regulation has been reproduced as follows:
"Provided that truing up of expenses for any year shall be carried out on the basis
of the audited annual accounts for the year subject to prudence check by the
Commission.”
5.124 Thus, in absence of established/ authenticated baseline data and audited accounts
for the year, it is not in the fitness of things to estimate sharing of gains and losses
on basis of provisional accounts as part of review exercise. Thus, the Commission
has not considered any sharing of gains/ losses on account of controllable factors
and same will be considered at the time of True up based on audited accounts for
the year.
Aggregate Revenue Requirement (ARR) for FY 2013-14
5.125 Based on the various components as discussed above, the summary of ARR for the
FY 2013-14 as submitted by the Petitioner and as approved by the Commission has
been summarized in the following table.
Table 47: Summary of ARR for FY 2013-14 (Cr)
Particulars Approved in
MYT Order
Submitted now
by Petitioner
Approved now
by JKSERC
Power Purchase Cost 2,916.02 3,873.79 3,445.20 *
Water usage charges (JKSPDC+NHPC) 305.65 495.65 436.20 #
Intra-state transmission Charges 105.33 105.33 102.69
Operation and Maintenance Cost 429.53 506.08 463.00
Interest Cost 16.08 16.14 15.54
Depreciation 6.68 6.62 6.17
Interest on Working Capital 48.71 53.60 53.84
Sub-total 3,828.00 5,057.21 4,522.64
Add: Return on Equity 0.00 0.00 0.00
Less: Non-Tariff Income 14.09 14.09 14.09
Aggregate Revenue Requirement 3,813.90 5,043.12 4,508.55
* Note: This is subject to providing of additional budgetary allocation by the State Government, as the
approved allocated budget for power purchase for JKPDD-D for FY 2013-14 is Rs. 3,336 Cr only.
#Note: This is subject to providing of additional budgetary allocation by the State Government, over and
above the power purchase cost.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 79
Revenue from Sale of Power at Existing Tariffs
Petitioner’s Submission
5.126 Based on the projected energy sales, number of consumers and connected load
based on actual for the first nine (9) months and estimated for remaining period of
FY 2013-14 and the category-wise approved tariffs as per the MYT Order dated
25th
April 2013, the revenue assessed at the existing tariff by the Petitioner for
FY 2013-14 works out to Rs. 1,777.41 Cr as against approved revenue of Rs.
1872.70 Cr by the Commission in the MYT Order dated 25th
April 2013.
Commission’s Analysis
5.127 The Commission, in the MYT Order dated 25th
April 2013 had estimated the sales
and demand for FY 2013-14 in accordance with the Regulations 16 & 17 of the
JKSERC (Multi Year Distribution Tariff) Regulations, 2012. Based on the
approved energy sales for FY 2013-14 i.e. 5,263 MU and the approved revenue
realization at revised tariff for FY 2013-14 and 100% collection efficiency, the
revenue from sale of power was approved at Rs.1872.70 Cr in the MYT Order
dated 25th
April 2013.
5.128 Based on the revised approved number of consumers, connected load, energy sales
and existing tariffs as per the MYT order dated 25th
April 2013, the Commission
has now estimated the revenue realization for FY 2013-14 as Rs. 1951.89 Cr.
5.129 The consumer category-wise revenue assessed from sale of power for FY 2013-14
as approved in MYT order, projected now by Petitioner and approved now by the
Commission is summarized as follows.
Table 48: Projected and Approved Revenue from Sale of power for FY 2013-14 (Rs Cr)
Sl. No. Consumer Category Approved in
MYT Order
Submitted now
by Petitioner
Approved now
by JKSERC
1 Domestic 481.94 524.38 596.87
2 Non Domestic / Commercial 209.40 169.40 190.06
3 Agriculture 99.84 81.00 107.25
4 State / Central Govt. Department 327.42 307.43 299.56
5 Public Street Lighting 17.95 19.62 18.96
6 LT industrial Supply 126.65 102.54 191.30
7 HT Industrial Supply 258.58 216.82 252.25
8 HT-PIU Industrial Supply 54.40 43.38 54.02
9 LT Public Water Works 163.21 192.77 191.30
10 HT Public Water Works 52.21 42.31 49.16
11 General Purpose Bulk 81.10 77.76 90.50
Total 1872.70 1777.41 1951.89
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JKSERC Page 80
Revenue Gap
Petitioner’s Submission
5.130 Based on the revised estimates of ARR for FY 2013-14 i.e. Rs. 5043.12 Cr and
assessed revenue realization for FY 2013-14 i.e. Rs. 1777.41 Cr, the Petitioner has
estimated revenue gap at existing tariffs for FY 2013-14 to be Rs. 3265.71 Cr.
Commission’s Analysis
5.131 Based on the approved ARR for FY 2013-14 of Rs. 4508.55 Cr and approved
revenue assessed for FY 2013-14 i.e. Rs. 1951.89 Cr as per the review exercise for
FY 2013-14, the Commission estimated revenue gap for FY 2013-14 as
Rs. 2556.65 Cr as against Rs. 3265.71 Cr claimed by the Petitioner. This is subject
to true up based on audited accounts and actuals for FY 2013-14 to be submitted
along with next tariff petition.
5.132 The following table summarizes the revenue gap for FY 2013-14 as approved in
MYT order, projected now by Petitioner and approved now by the Commission.
Table 49: Projected and Approved Revenue Gap at Existing Tariffs for FY 2013-14 (Rs Cr)
Sl. No. Particulars Approved in
MYT Order
Submitted now
by Petitioner
Approved now
by JKSERC
1 Aggregate Revenue Requirement. 3813.90 5043.12 4508.55
2 Revenue Assessed 1872.70 1777.41 1951.89
3 Revenue Gap (1941.20) (3265.71) (2556.65)
5.133 Further, as per the approach adopted by the Commission for cost coverage in its
previous Tariff Orders, the Commission has determined Average Cost of Supply at
Approved Loss Level (ACOSAL) to measure approved cost of supply keeping in
mind approved losses, Average Cost of Supply at Zero Loss level (ACOSZL) to
determine tariffs to recover atleast power purchase and other distribution costs
without booking huge losses simply to avoid tariff shock to consumers and
Average Cost of Supply at Prudent Loss level (ACOSPL) to determine gradual
movement towards recovery of average cost of supply at targeted/ prudent loss
levels.
5.134 For computation of average cost of supply at different loss levels, the Commission
considered the following:
(a) Average Cost of Supply at Approved Loss (ACOSAL): The Commission
has calculated the ACOSAL by dividing the overall ARR of the utility by the
approved energy sales quantum (units) for any financial year.
(b) Average Cost of Supply at Zero Loss (ACOSZL): The Commission has
calculated the ACOSZL by dividing the overall ARR of the utility by the
quantum (units) of power purchased for any financial year.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 81
(c) Average Cost of Supply at Prudent Loss (ACOSPL): The Commission
has calculated the ACOSPL by dividing the overall ARR of the utility by the
quantum (units) of energy that would have been billed corresponding to the
prudent level of T&D losses.
(d) Prudent level of T&D losses: The Commission has considered T&D
losses of 23.65% as the prudent level of T&D losses (the average T&D loss
at the national level as per the Central Electricity Authority). The
Commission feels that fixing the prudent T&D loss level at 15% (in line
with the Abraham Committee Report targets) will be unrealistic as the
current T&D loss in the state is above 50%. Moreover, only a few states in
the country have actually been able to achieve this target level of 15% loss.
As such, the Commission has decided to consider an average value of T&D
loss across all states in the country as the prudent level.
5.135 It is also pertinent to mention here, that even though the Commission determines
ACOSPL i.e. average cost of supply at prudent loss levels, it is a benchmark figure
aimed to move tariffs in direction of cost recovery; however same has to be
matched by performance and efficiency improvement by the JKPDD-D.
At present, the tariffs in the State are fixed to recover ACOS at Zero Losses only.
5.136 The following table summarizes ACOSAL, ACOSZL and ACOSPL as approved
by the Commission in the MYT Order dated 25th
April 2013, proposed now by the
Petitioner and approved now by the Commission for FY 2013-14:
Table 50: Projected and approved average COS for FY 2013-14 (Rs/KWh)
Sl.
No
.
Particulars Derivatio
n
Approved in
MYT Order
Submitted
now by
Petitioner
Approved
now by
JKSERC
A Energy Sales (MU) - 5,263 5,849 5,849
B T&D Losses (%) - 45.26% 51.54% 45.26%
C Power Purchase Quantum (MU) - 9614 12070 10685
D Aggregate Revenue Requirement (Rs Cr) - 3813.90 5043.12 4508.55
E COS as actual / approved losses (CoSAL)
(Rs/KWh)
[ E = D/ A
* 10 ] 7.25 8.62 7.71
F CoS at Zero Losses (CoSZL) (Rs/KWh) [ F = D /
C * 10 ] 3.97 4.18 4.22
G CoS at Prudent Losses (CoSPL) (Rs/KWh)
[ G = D/
(C * (1-
H)) *10 ] 5.22 - * 5.53
H Approved average realization rate - 3.56 3.04 3.34
Note 1: * The Petitioner has not submitted any estimates of prudent loss levels.
Note 2: The prudent loss level for FY 2013-14 is considered as 23.65% (as per monthly statistics by CEA,
www.cea.nic.in)
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JKSERC Page 82
CHAPTER 6: DETERMINATION OF ARR FOR FY 2014-15
6.1 This section contains a summary of projections made for revised ARR for
FY 2014-15 and approval of costs and revenue for FY 2014-15.
6.2 The Petitioner has also submitted revised projections for FY 2015-16 as part of
its APR Petition, however as the scope of this Order pertains to approval of APR
for FY 2013-14 and revision of tariffs for FY 2014-15 only, the Commission has
analyzed the impact of certain changes including the number of projected
consumers with installation of correct meters on the ARR for FY 2014-15 as part
of this Order. The review of projections for FY 2015-16 will be carried out along
with next tariff petition.
Sales Projections
Petitioners Submission
6.3 The projections have been made on the basis of revised estimates of the
FY 2013-14 and the cumulative annual growth rate CAGR for consumer growth,
connected load growth and sale of energy across the various categories.
Table 51: Projected number of consumers, connected load (MW) & energy sales (MU) for FY 2014-15
S. No Consumer Category No of
Consumers
Connected
Load (MW)
Energy Sales
(MU)
1 Domestic
- Metered 1044331 1013 1967
- Unmetered 501693 333 1095
2 Non Domestic / Commercial
- Metered 146392 229 371
- Unmetered 45440 53 176
3 Agriculture/Irrigation.
- Metered 14590 104 298
- Unmetered 4406 34 67
4 State / Central Govt. Departments.
- Metered 10396 201 486
- Unmetered 0
5 Public Street Lighting
- Metered 171 7 28
- Unmetered 101 5 16
6 LT industrial Supply
- Metered 20150 259 305
- Unmetered
7 HT Industrial Supply
- Metered 787 338 679
- Unmetered
8 HT-PIU Industrial Supply
- Metered 14 38 125
- Unmetered
9 LT Public Water Works
- Metered 1433 59 233
- Unmetered 425 33 206
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JKSERC Page 83
S. No Consumer Category No of
Consumers
Connected
Load (MW)
Energy Sales
(MU)
10 HT Public Water Works
- Metered 163 21 96
- Unmetered
11 General Purpose / Bulk Supply
- Metered 149 60 176
- Unmetered
Grand Total 17,90,641 2787 6323
Commissions Analysis
6.4 On scrutiny of the projections of the category wise number of consumers
submitted by the Petitioner, the Commission found that the data submitted by the
Petitioner was consistent with the revised metering plan submitted by the
Petitioner and adopted by the Commission vide its Suo-moto Order dated
21st April 2014. The Commission is also aware that the Petitioner is making
efforts to regularize unauthorized consumers. Thus, the Commission
provisionally approves the number of consumers, connected load and energy
sales for un-metered consumers as per the submission made by the Petitioner.
The Commission clarifies that no true up shall be allowed in the absence of
reliable, verified and audited data.
6.5 The category wise number of consumers, connected load and sales with respect
to metered consumers have been revised based on the category wise compounded
annual growth rates (CAGR) for previous three years (FY 2009-10, FY 2010-11
and FY 2011-12) and applied on estimated consumers, connected load and
energy sales for FY 2013-14. Further the unmetered consumers proposed to be
metered during the year i.e. FY 2014-15 has also been added to the metered
category along with the projected connected load and energy sales.
6.6 It is clarified that the Commission has maintained the methodology of forecast of
these parameters as per the MYT Order dated 25th April 2013 in order to
facilitate consistency and predictability as envisaged in MYT regime.
6.7 Accordingly, the number of consumers, connected load and energy sales as
submitted by the Petitioner and approved by the Commission for FY 2014-15
have been summarized in following tables:
Table 52: Consumer category-wise number consumers (Nos.) approved for FY 2014-15
Consumer Category
FY 2014-15
S. No Submitted
now by
Petitioner
Approved
now by
JKSERC
1. Domestic
Metered 10,44,331 10,44,331
Un-metered 5,01,693 5,01,693
2. Non - Domestic/ Commercial
Metered 1,46,392 1,46,392
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JKSERC Page 84
Consumer Category
FY 2014-15
S. No Submitted
now by
Petitioner
Approved
now by
JKSERC
Un-metered 45,440 45,440
3. Agriculture
Metered 14,590 14,590
Un-metered 4,406 4,406
4. State/ Central Govt. Departments 10,396 10,396
5. Public Street Lighting
Metered 171 171
Un-metered 101 101
6. LT Industrial Supply
Metered 20,150 20,150
Un-metered 0 0
7. HT Industrial Supply 787 787
8. HT PIU 14 14
9. LT Public Water Works
Metered 1,433 1,433
Un-metered 425 425
10. HT Public Water Works 163 163
11. Bulk Supply 149 149
TOTAL 17,90,641 17,90,641
Table 53: Consumer category-wise connected load (MW) approved for FY 2014-15
Consumer Category
FY 2014-15
S. No Submitted
now by
Petitioner
Approved
now by
JKSERC
1. Domestic
Metered 1,013 1,013
Un-metered 333 333
2. Non - Domestic/ Commercial
Metered 229 229
Un-metered 53 53
3. Agriculture
Metered 104 104
Un-metered 34 34
4. State/ Central Govt. Departments 201 201
5. Public Street Lighting
Metered 7 7
Un-metered 5 5
6. LT Industrial Supply
Metered 259 259
Un-metered 0 0
7. HT Industrial Supply 338 338
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 85
Consumer Category
FY 2014-15
S. No Submitted
now by
Petitioner
Approved
now by
JKSERC
8. HT PIU 38 38
9. LT Public Water Works
Metered 59 59
Un-metered 33 33
10. HT Public Water Works 21 21
11. Bulk Supply 60 60
TOTAL 2,787 2,787
Table 54: Consumer category-wise energy sales (MU) approved for FY 2014-15
Consumer Category
FY 2014-15
S. No Submitted
now by
Petitioner
Approved
now by
JKSERC
1. Domestic
Metered 1,967 2,016
Un-metered 1,095 1,095
2. Non - Domestic/ Commercial
Metered 371 428
Un-metered 176 176
3. Agriculture
Metered 298 335
Un-metered 67 67
4. State/ Central Govt. Departments 486 491
5. Public Street Lighting
Metered 28 31
Un-metered 16 16
6. LT Industrial Supply
Metered 305 311
Un-metered 0 0
7. HT Industrial Supply 679 682
8. HT PIU 125 125
9. LT Public Water Works
Metered 233 246
Un-metered 206 206
10. HT Public Water Works 96 100
11. Bulk Supply 176 179
TOTAL 6,323 6,504
Losses and Energy Requirement
Petitioners Submission
6.8 JKPDD has submitted that it is making every effort to achieve the loss reduction
target as set by the Commission at the end of the control period. It has projected
the distribution loss for FY 2014-15 on the basis of revised estimates of loss for
FY 2013-14 and the past trend in the loss reduction.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 86
Table 55: Projected Transmission & Distribution Loss for FY 2014-15 (%)
Particulars Submitted now
by Petitioner
Distribution Loss (%) 46.1%
Intra-State Transmission Loss (%) 4%
Commissions Analysis
6.9 The T&D losses of the Petitioner are much higher than the neighboring states and
continue to remain amongst the highest in the country.
6.10 The trajectory for T&D losses for the duration of MYT period had been set after
giving due consideration to the prevailing scenario in the State, the capital
investments approved, vigilance measures envisaged and also the Petitioner’s
submission. It is a matter of great concern that the Petitioner has still not been
able to bring about the reduction in T&D losses as per the approved trajectory.
6.11 Further, the consumers cannot be made to bear the burden of the non-
performance of the Petitioner with respect to the T&D loss levels of its system.
Therefore, in accordance with the principles adopted in previous Tariff Orders,
Annual Performance Review for FY 2013-14 and MYT principles the
Commission does not find any merit in allowing a deviation from the approved
loss trajectory. Thus, any power purchase to meet energy requirement beyond
approved T&D losses is disallowed by the Commission.
6.12 For FY 2014-15, the Commission had set a target for T&D losses of 43.76% in
the MYT Order for FY 2014-15 (corresponding to target of distribution loss of
41.4% and intra-state transmission loss of 4%) and same is approved now.
Table 56: Approved T&D Loss for FY 2014-15 (%)
Particulars Submitted now
by Petitioner
Approved now
by Commission
Distribution Loss (%) 46.1% 41.4%
Intra-State Transmission Loss (%) 4% 4%
6.13 Based on its projected energy sales and loss trajectory, the energy requirement
for the FY 2014-15 as forecasted and submitted by the Petitioner and as approved
by the Commission has been summarized in following table:
Table 57: Approved Energy Requirement for FY 2014-15
Particulars
Submitted
now by
Petitioner
Approved
now by
Commission
Energy requirement
0
Energy Sales 6,323 6,504
Add: Distribution Loss (%) 46.1% 41.4%
Distribution Loss (MU) 5,405 4,598
Energy Req. @ Dist. Periphery 11,728 11,102
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JKSERC Page 87
Particulars
Submitted
now by
Petitioner
Approved
now by
Commission
Add: Intra-state Trans. Loss (%) 4% 4%
Intra-state Trans. Loss (MU) 489 463
Energy Req. @ Trans. Periphery 12,217 11,565
Power Purchase Quantum
Petitioner’s Submission
6.14 The Petitioner has projected the energy availability for FY 2014-15 from
JKSPDC, CGUs and other sources on the basis of revised estimates of FY 2013-
14 and as per share of allocated and unallocated power from state and CGSs for
the period.
6.15 Also to meet the gap between the total energy available from the sources referred
above and the energy required during the period, the JKPDD-D shall purchase
balance power on short term basis in accordance with the Regulation 19(d) of the
JKSERC (Distribution Multi Year Tariff) Regulation 2012.
Table 58: Projected Energy available from JKSPDC Generating Stations (MU)
S. No. Source FY 2014-15
Projected
A) Thermal
1 Kalakote 0.00
2 Gas Turbine-I 0
3 Gas Turbine-II 0
Sub-Total (A) 0
B) Hydel
1 LJHP 542
2 USHP-I 94
3 USHP-II 218
4 Ganderbal 23
5 Chenani-I 83
6 Chenani-II 7
7 Chenani-III 16
8 Sewa-III 8
9 Karnah 5
10 Sumoor 0
11 Bazgo 0
12 Hunder 1
13 Iqbal Bridge 4
14 Sanjak 1
15 Badherwah 3
16 Pahalgam 5
17 Haftal 1
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JKSERC Page 88
S. No. Source FY 2014-15
Projected
18 Marpacho 1
19 Igo-Mercellong 2
20 Matchil 0
21 Stakna. 0
Sub-Total (B) 1014
C Baghlihar. 1367
Sub-Total (C) 1367
Grand Total 2381
Table 59: Projected Energy available from CGSs (MU)
S. No Source FY2014-15
Projected
A NTPC
1 Anta(G) 218
2 Anta(LNG+L)
3 Auriaya(G) 178
4 Auriaya(LNG+L)
5 Dadri(G) 322
6 Dadri(LNG+L)
7 Unchahar-I 104
8 Unchahar-II 249
9 Unchahar-III 105
10 Rihand-I 548
11 Rihand-II 699
12 Rihand-III 273
13 Singrauli 117
14 Farraka 102
15 Talcher 0
16 Kahalgaon-I 225
17 Kahalgaon-II 600
18 Nctp-2 67
19 Korba-I 98
20 Korba-III 42
21 Mouda 19
22 Sipat-I 155
23 Sipat-II 63
24 Vindhyachal-I 78
25 Vindhyachal-2 61
26 Vindhyachal-3 63
27 Vindhyachal-4 42
Sub-Total (A) 4428
B NHPC
1 Salal 724
Free power 387
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JKSERC Page 89
S. No Source FY2014-15
Projected
2 Tanakpur 31
3 Chamera-I 88
4 Chamera-II 113
5 Chamera-III 80
6 Uri-I 506
Free power 277
7 Uri-II 208
Free power 73
8 Dulhasti 245
Free power 278
9 Dhauliganga 23
10 Sewa-II 30
Free power 51
11 Nimao Bazgo 93
Free power 10
12 Chutak 202
Free power 30
Sub-Total (B) 3449
C SJVNL 562
D THDC 235
E THDC Koteshwar 84
F PTC India Ltd.
PTC(Tala) 64
PTC(BHEP) 77
Sub-Total(F) 141
G NPCIL
NAPS 223
RAPP 3&4 271
RAPP 5&6 237
TAPS 3&4 74
KAPS 23
Sub-Total(E) 828
H JHAJJAR 34
Grand Total 9761
Table 60: Projected details of Short term purchase (MU)
Name of Source FY2014-15
Projected
NVVN -
IEX 441
Total 441
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JKSERC Page 90
6.16 Based on the availability of power from different sources and the inter-state
transmission losses, total power procurement during the review period to meet
the energy requirement as proposed by the Petitioner has been summarized in the
following table:
Table 61: Projected total Energy Availability (MU)
Energy Source FY2014-15
Projected
Power purchase from JKSPDC 2381
Power purchase from CGSs (all sources including short
term/banking etc) 10,203
Less: Inter-state Transmission losses @ 3.6% p.a. (367)
Total Energy Available 12,217
6.17 In addition to above, the Petitioner also submitted that it has estimated RPO
target for FY 2014-15 as 629 MU out of which it will meet non-solar RPO of
254 MU from purchase of power from mini/small hydel stations of JKSPDC.
However, the Petitioner has not considered any purchase to meet remainder RPO
in its projection for energy availability. The Projected RPO target for
FY 2014-15 as submitted by the Petitioner has been summarized below.
Table 62: Projected details of RPO FY 2014-15 (MU)
Renewable energy requirement FY2014-15
Projected
Solar Power 31
Non-Solar 598
Total RE (MUs) 629
RE Available from Mini Hydel Plants 254
Commissions Analysis
6.18 The JKPDD-D sources power from own sources, state owned generating
company namely JKSPDC, allocated/ unallocated share in CGSs, banking
arrangement, short term purchase through UI, and any other source.
6.19 For the projection of energy availability from JKPDD own station and JKSPDC
thermal station, the Commission has considered the actual net energy generated
and sent out in FY 2013-14 after considering prudence check on the basis of
sample bills. Accordingly, the Commission approves the net energy available
from own generating stations and JKSPDC to be 2411 MU for FY 2014-15.
6.20 The energy availability from CGS’s stations including NTPC, NHPC, NPCIL,
PTC etc has been estimated on the basis of long term allocated share to JKPDD-
D from these stations along with proportion of un-allocated share available
during past 2 years. The average availability from these stations has been worked
out, which is then used to estimate the availability during the FY 2014-15.
Accordingly, the Commission approves energy available from CGSs to be
9761 MU for FY 2014-15.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 91
6.21 The Commission has not projected any power availability from short-term
sources since the Commission, in accordance with the Regulation 19(d) of the
JKSERC (Distribution Multi Year Tariff) Regulation 2012, will approve such
requirement on account of any factor beyond the control of the Licensee only
such as shortage/ non-availability of fuel, snow capping of hydro resources
inhibiting power generation in sources stipulated in the plan, unplanned/forced
outages of power generating units or acts of God and after submission of
supporting documents.
6.22 The RPO target in accordance with the JKSERC (Renewable Power Purchase
Obligation, its Compliance and REC Framework implementation) Regulations,
2011 and JKSERC Notification No. JKSERC/27 dated 5th
March 2013 is as
follows:
Table 63: Renewable Purchase Obligation (RPO) for MYT period (in %)
Description 2013-14 2014-15 2015-16
Solar 0.25% 0.75% 1.50%
Non-Solar 4.75% 5.25% 6.00%
Total 5.00% 6.00% 7.50%
Note: RPO in MUs is estimated as a percentage of total energy requirement based on above
mentioned targets.
6.23 As per the table above, the target for the power purchase from renewable sources
works out to 694 MU, out of which the solar RPO target is 87 MU and non-solar
RPO target is 607 MU. Since, non-solar RPO can be met through purchase of
already tied up power from small hydro stations of JKSPDC having installed
capacity < 25 MW and the projected power availability from JKSPDC’s small
hydro stations during FY 2014-15 is 254 MU, thus the requirement of non-solar
power/ RECs to meet non-solar RPO is revised to 353 MU. Accordingly, the
Commission approves the target of 607 MU of non solar and 87 MU of solar
RPO targets for FY 2014-15.
6.24 However, the Commission notes with concern that the Petitioner has not made
any efforts in purchase of power from RE sources other than that available
through mini/small hydro stations of JKSPDC to meet its RPO targets for
FY 2013-14 despite the fact that a number of hydro projects with a capacity of
less than 25 MW have come up in the State through IPPs. The Commission feels
non-compliance with these targets shows lack of seriousness on the part of the
JKPDD-D to ensure long term energy security in the State. During, FY 2014-15,
the Commission directs the Petitioner to comply with its RPO target either
through purchase of RE power or RECs from power exchange. Further
non-compliance will attract penal action by the Commission.
6.25 In order to make the compliance with RPO targets more effective, the
Commission directs the JKPDD-D to open a separate account for meeting the
annual fixed obligation of renewable energy, which includes carry forward the
balances and purchase of RECs to meet shortfall, if any. This is necessary to
ensure the compliance of the relevant regulations. JKPDD-D shall review the
position with the Nodal Agencies periodically and report the progress to the
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 92
Commission. Further, the utilization of the funds created in this account shall be
decided by the utility in consultation with the Commission as per the relevant
regulations.
6.26 Further, as stated above in paragraphs 6.11 and 6.12, the Commission has
approved T&D losses as per target approved in MYT order dated 25th
April 2013
and accordingly disallowed any additional power purchase over and above the
target loss level by the licensee for FY 2014-15. The disallowed units of power
purchase works out to 616 MU for FY 2014-15. This becomes all the more
relevant in the face of the communication bearing No. PDD/II/AC/86/2012 dated
12th
June 2014 from Director Finance, JKPDD that “JKPDD shall be purchasing
power during FY 2014-15 for an amount of Rs 3667.50 Cr as provisioned in the
state budget”.
6.27 Based on the above analysis and considering inter-state transmission losses at
3.60% for the period FY 2014-15, the approved energy availability from all
sources has been summarized in the following table.
Table 64: Projected Energy available for FY 2014-15 (MU)
Particulars
Submitted
now by
Petitioner
Approved
now by
Commission S. No
A State-owned Stations
JKPDD - Own Stations
1. Diesel 0 25
Sub-Total (A) 0 25
B JKPDC – Thermal
1. Kalakote 0 0
2. Gas Turbine-I 0 5
3. Gas Turbine-II 0 0
Sub-Total (B) 0 5
C JKPDC – Hydel
1. LJHP 542 542
2. USHP-I 94 94
3. USHP-II 218 218
4. Ganderbal 23 23
5. Chenani-I 83 83
6. Chenani-II 7 7
7. Chenani-III 16 16
8. Sewa-III 8 8
9. Karnah 5 5
10. Sumoor 0 0
11. Bazgo 0 0
12. Hunder 1 1
13. Iqbal Bridge 4 4
14. Sanjak 1 1
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 93
Particulars
Submitted
now by
Petitioner
Approved
now by
Commission S. No
15. Badherwah 3 3
16. Pahalgam 4 5
17. Haftal 1 1
18. Marpachoo 1 1
19. Igo-Mercellong 2 2
20. Stakna 0 0
21. Matchil 0 0
Sub-Total (C) 1014 1014
D. Baglihar(D) 1367 1367
E. Total State Owned Generation(A+B+C+D) 2381 2411
F. NTPC
1. Anta(G) 218 218
2. Anta(LNG+L)
3. Auriaya(G) 178 178
4. Auriaya(LNG+L)
5. Dadri(G) 322 322
6. Dadri(LNG+L)
7. Unchahar-I 104 104
8. Unchahar-II 249 249
9. Unchahar-III 105 105
10. Rihand-I 548 548
11. Rihand-II 699 699
12. Rihand-III 273 273
13. Singrauli 117 117
14. Farraka 102 102
15. Talcher 0 0
16. Kahalgaon-I 225 225
17. Kahalgaon-II 600 600
18. Nctp-2 67 67
19. Korba-I 98 98
20. Korba-III 42 42
21. Mouda 19 19
22. Sipat-I 155 155
23. Sipat-II 63 63
24. Vindhyachal-I 78 78
25. Vindhyachal-2 61 61
26. Vindhyachal-3 63 63
27. Vindhyachal-4 42 42
Sub-Total (F) 4428 4428
G NHPC
1. Salal 724 724
2. Free power 387 387
3. Tanakpur 31 31
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 94
Particulars
Submitted
now by
Petitioner
Approved
now by
Commission S. No
4. Chamera-I 88 88
5. Chamera-II 113 113
6. Chamera-III 80 80
7. Uri-I 506 506
8. Free power 277 277
9. Uri-II 208 208
10. Free power 73 73
11. Dulhasti 245 245
12. Free power 278 278
13. Dhauliganga 23 23
14. Sewa-II 30 30
15. Free power 51 51
16. Nimao Bazgo 93 93
17. Free power 10 10
18. Chutak 202 202
19. Free power 30 30
Sub-Total (G) 3449 3449
H SJVNL(H) 562 562
I THDC(I) 235 235
J THDC Koteshwar(J) 84 84
K PTC India Ltd.
1. PTC(Tala) 64 64
2. PTC(BHEP) 77 77
Sub-Total(K) 141 141
L NPCIL
1. NAPS 223 223
2. RAPP 3&4 271 271
3. RAPP 5&6 237 237
4. TAPS 3&4 74 74
5. KAPS 23 23
Sub-Total(L) 828 828
M Jhajjar (M) 34 34
N Total - Outside State sources (F+G+H+I+J+K+L+M) 9761 9761
O Other (incl. ST Purchase)
NVVN/IEX 441 0
Renewable Purchase Obligation 0 440
UI (-)/(+) 0 0
Sub-total (O) 441 440
P Power traded (disallowed) 0 -616
Gross Energy Availability (E+N+O- P) 12,584 11,996
Less: Inter-state Transmission Loss @ 3.6% 367 431
Net Energy Availability 12,217 11,565
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 95
Power Purchase Cost
Power Purchase from JKSPDC, CGSs and Other Sources
Petitioner’s Submission
6.28 The petitioner has projected the power purchase cost from the above mentioned
stations on the basis of revised estimates of FY 2013-14, expected fixed and
variable charges of power purchased from JKSPDC, CGSs and other sources.
JKPDD-D has not considered the water usage charges for the projections and
those charges have been shown separately.
Table 65: Projected Power Purchase Cost details from JKSPDC for FY 2014-15 (Rs Cr)
S. No. Source FY2014-15
Projected
A) Thermal
1 Kalakote 0.00
2 Gas Turbine-I 0.00
3 Gas Turbine-II 0.00
Sub-Total (A) 0.00
B) Hydel
1 LJHP 33.08
2 USHP-I 5.62
3 USHP-II 18.09
4 Ganderbal 0.98
5 Chenani-I 5.87
6 Chenani-II 0.67
7 Chenani-III 2.26
8 Sewa-III 1.56
9 Karnah 1.54
10 Sumoor 0.03
11 Bazgo 0.10
12 Hunder 0.20
13 Iqbal Bridge 0.65
14 Sanjak 0.34
15 Badherwah 0.38
16 Pahalgam 2.32
17 Haftal 0.62
18 Marpacho 0.41
19 Igo-Mercellong 1.05
20 Matchil 0.00
21 Stakna. 0.01
Sub-Total (B) 75.78
C Baglihar. 409.95
Sub-Total (C) 409.95
Grand Total 485.73
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 96
Table 66: Projected Power Purchase Cost details from CGSs for FY 2014-15 (Rs Cr)
S. No Source FY2014-15
Projected
A NTPC
1 Anta(G) 87.98
2 Anta(LNG+L)
3 Auriaya(G) 98.14
4 Auriaya(LNG+L)
5 Dadri(G) 145.71
6 Dadri(LNG+L)
7 Unchahar-I 37.14
8 Unchahar-II 90.13
9 Unchahar-III 41.57
10 Rihand-I 130.18
11 Rihand-II 169.88
12 Rihand-III 83.82
13 Singrauli 23.24
14 Farraka 46.81
15 Talcher 0.00
16 Kahalgaon-I 91.78
17 Kahalgaon-II 244.82
18 Nctp-2 30.95
19 Korba-I 14.75
20 Korba-III 10.24
21 Mouda 10.98
22 Sipat-I 46.62
23 Sipat-II 18.33
24 Vindhyachal-I 17.19
25 Vindhyachal-2 12.90
26 Vindhyachal-3 16.12
27 Vindhyachal-4 12.14
Surcharge 3.56
Rebate -2.16
Sub-Total (A) 1,482.81
B NHPC
1 Salal 78.94
2 Tanakpur 8.68
3 Chamera-I 16.18
4 Chamera-II 43.25
5 Chamera-III 35.49
6 Uri-I 105.24
7 Uri-II 110.88
8 Dulhasti 138.57
9 Dhauliganga 11.23
10 Sewa-II 17.16
11 Nimao Bazgo 57.84
12 Chutak 152.73
Surcharge 110.01
Sub-Total (B) 886.21
C SJVNL 149.59
Surcharge 7.76
Sub-Total (C) 157.35
D THDC 116.10
Surcharge 2.96
Sub-Total (D) 119.07
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 97
S. No Source FY2014-15
Projected
E THDC Koteshwar 29.19
Surcharge 0.74
Sub-Total (E) 29.93
F PTC India Ltd.
PTC(Tala) 12.59
PTC(BHEP) 36.93
PTC(IEX) 156.55
Surcharge 3.05
Sub-Total(F) 209.11
G NPCIL
NAPS 55.68
RAPP 3&4 75.65
RAPP 5&6 81.84
TAPS 3&4 21.19
KAPS 5.37
Surcharge 6.93
Sub-Total(G) 246.67
H JHAJJAR 28.99
Surcharge 0.54
Sub-Total(H) 29.52
I PGCIL 352.07
Rebate -0.12
J NVVN JPL(Sh.term) -
K RE Charges 13.08
Grand Total * 3,525.70
*includes NHPC water usage charges with arrears for previous years, while projecting ARR, the
water usage charges for NHPC stations for current year have been provided separately.
Commissions Analysis
6.29 The Commission has approved the power purchase cost from JKSPDC as per the
JKSPDC Tariff Order FY 2014-15 passed by the Commission on
21st February 2014. The total power purchase cost from state generation stations
for FY 2014-15 computed by the Commission is summarized in the following
table:
Table 67: Approved Power Purchase Cost details from State Stations for FY 2014-15 (Rs Cr)
Name of the Station
Total
Charges
(Rs Cr)
Average
Rate
(Rs/KWh)
PDD
Diesel 0.00 0.00
Thermal
Kalakote 0.00 0.00
Gas Turbine-I 0.00 0.00
Gas Turbine-II 0.00 0.00
Hydel/JKPDC
LJHP 29.04 0.54
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 98
Name of the Station
Total
Charges
(Rs Cr)
Average
Rate
(Rs/KWh)
USHP-I 5.90 0.63
USHP-II 18.59 0.85
Ganderbal 1.04 0.45
Chenani-I 6.08 0.74
Chenani-II 0.69 0.96
Chenani-III 2.32 1.41
Sewa-III 1.60 1.99
Karnah 1.59 2.99
Sumoor 0.03 3.43
Bazgo 0.10 3.28
Hunder 0.20 2.58
Iqbal Bridge 0.67 1.82
Sanjak 0.24 4.10
Badherwah 0.31 1.20
Pahalgam 2.09 4.67
Haftal 0.59 4.32
Marpachoo 0.39 4.46
Igo-Mercellong 1.00 4.29
Matchil 0.00 0.00
Stakna 0.01 0.42
Baglihar 387.06 2.83
Total (SGS) 459.55 1.91
6.30 For the purpose of calculation of power purchase cost from CGSs, the
Commission has adopted the following methodology as per the last year’s MYT
Order:
(e) In case of NTPC stations, the Commission had approved the per unit
variable cost (including FPA) for FY 2013-14 based on the approved rates
as per the latest Tariff Orders by CERC which were further escalated at 3%
per annum to arrive at variable cost per unit for FY 2014-15 as approved in
the MYT Order for the FY 2013-14 to FY 2015-16. The fixed charge for
NTPC stations has been based on the Annual Fixed Charges (AFC)
approved by CERC in its latest tariff orders.
(f) In case of NHPC stations and other hydel stations, the station wise actual
charges paid by the Petitioner for FY 2013-14 have been considered for
working out the charges to be paid in FY 2014-15.
(g) In case of NPCIL stations, the Commission had estimated the variable cost
per unit for FY 2014-15 by considering the actual variable cost per unit for
FY 2013-14 in accordance with principles stated in the MYT order for the
FY 2013-14 to FY 2015-16.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 99
6.31 The total power purchase cost from CGSs for FY 2014-15 computed by the
Commission is summarized in the following table.
Table 68: Approved Power Purchase Cost details from CGSs for FY 2014-15 (Rs Cr)
Name of the Station Total Charges Average rate
(Rs Cr) (Rs/KWh)
NTPC
Anta gas 89.97 4.12
Auraiya gas 100.39 5.65
Dadri gas 149.33 4.63
Farakka 47.68 4.68
Kahalgaon-I 93.61 4.16
NCTPS (Dadri) [extn.] 31.56 4.73
Rihand –I 132.24 2.41
Rihand –II 172.52 2.47
Singrauli 23.59 2.02
Unchahar-I 37.85 3.64
Unchahar-II 91.81 3.69
Unchahar-III 42.28 4.04
Kahalgaon stage-II 249.46 4.16
Mejia 6 0.00 0.00
APCL - Jhajjar (Unit - 1) 26.38 7.61
Rihand-III 84.85 3.10
Talcher 0.00 0.00
Korba-I 15.02 1.54
Korba-III 10.35 2.47
Mouda 11.12 5.75
Sipat-I 47.34 3.06
Sipat-II 18.64 2.94
Vindhyachal-I 17.53 2.26
Vindhyachal-2 13.15 2.17
Vindhyachal-3 16.38 2.59
Vindhyachal-4 12.31 2.93
Total NTPC 1535.36 3.44
Nuclear
RAPS - 3&4 75.66 2.79
RAPS - 5 81.85 3.46
NPCIL - NAPS 55.68 2.49
TAPS 3&4 21.13 2.85
KAPS 5.37 2.37
Total Nuclear 239.69 2.90
NHPC stations
CHAMERA-I 16.19 1.84
CHAMERA-II 43.25 3.82
CHAMERA-III 35.49 0.00
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 100
Name of the Station Total Charges Average rate
(Rs Cr) (Rs/KWh)
DHAULIGANGA 11.23 4.96
DULHASTI 138.56 5.66
Dulhasti Free 0.00 0.00
SALAL 79.35 1.10
Salal Free 0.00 0.00
TANAKPUR 8.68 2.74
URI-I 105.26 2.08
Uri Free 0.00 0.00
Sewa-II 17.15 5.70
Sewa-II Free 0.00 0.00
Chutak 154.89 0.00
Chutak Free 0.00 0.00
Niamo Bazgo 57.84 6.19
Niamo Bazgo Free 0.00 0.00
Uri-II 110.88 5.33
Uri -II Free 0.00 0.00
Total NHPC 778.77 2.26
Others
NJPC (SATLUJ) 149.60 2.66
TEHRI HEP 116.09 4.93
Koteshwar (THDC) 29.15 3.47
TALA HEP 12.86 2.02
PTC (BHEP) 36.93 4.79
PTC (KWHEP) 0.00 0.00
Total Others 344.63 3.37
Other misc/ RE charges (surcharge/ rebate) 144.55 -
Total Charges 3043.00 3.12
Cost of Renewable Energy procurement
Petitioner’s Submission
6.32 The petitioner has not projected the cost of renewable energy in the forecast even
though it has projected the energy available to meet RPO targets.
Commission’s Analysis
6.33 Since, it is mandatory to procure power from Renewable Energy Sources (RES)
as per the JKSERC (Renewable Power Purchase Obligation, its Compliance and
REC framework Implementation) Regulations, 2011; the Commission has
projected the power purchase cost from RES as per the tariff summarized in
following table.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 101
Table 69: Approved Power Purchase Cost from Renewable Energy Sources for FY 2014-15 (Rs Cr)
Description
FY 2014-15
Quantum
(MU)
Rate
(Rs/KWh)
Cost
(Rs Cr)
Solar sources 87 8.08 * 70.08
Non-solar sources 353 5.00 176.58
Total 440
246.66
Note: * As per CERC order dated 7th
January 2014, the average tariff for solar generating stations works
out to Rs. 8.08 per unit.
6.34 Further, as mentioned in Para 6.25, the Commission directs the Petitioner to open
a separate account for meeting the annual fixed obligation of renewable energy
and carry forward the balance, if any, to ensure the compliance of such
Regulations in true spirit.
Inter-state Transmission Charges
Petitioner’s Submission
6.35 Inter-state Transmission charges payable to PGCIL are based on the total
capacity allocation in the transmission network. The petitioner has proposed the
inter-state transmission charges to be Rs 352.07 Cr.
Commission’s Analysis
6.36 Since the inter-state Transmission Charges are based on the actual billing by
PGCIL, the Commission approves the inter-state transmission charges projected
by the petitioner i.e. Rs 352.07 Cr for FY 2014-15.
Disallowance of Power Purchase costs
6.37 As stated in para 6.26 of this Order, the Commission has disallowed additional
power purchase over and above the target loss level by the licensee during the
review period. The disallowed units of power purchase works out to 616 MU for
FY 2014-15.
6.38 The cost of units disallowed has been considered as the approved average power
purchase rate of gross power purchase from JKSPDC and CGSs which works out
to Rs. 3.25 per unit for FY 2014-15. The following table summarizes the cost of
power purchase disallowed by the Commission for the MYT control period.
Table 70: Disallowed power purchase cost by the Commission for FY 2014-15 (Rs Cr)
Sl. No. Description UoM 2014-15
A Cost of power purchase from JKSPDC Stations Rs Cr 459.55
B Cost of power purchase from CGSs (incl. inter-state transmission
charges, RE & other misc. charges) Rs Cr 3043.00
C Cost of power purchase to meet RPO Rs Cr 246.66
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 102
Sl. No. Description UoM 2014-15
D Inter-state Transmission charges Rs Cr 352.07
E Total power purchase costs from all sources (incl. inter-state
Transmission charges) Rs Cr 4,101.28
F Quantum of power purchased from JKSPDC & CGSs (Gross)
before units disallowed MU 12,612
G Average rate of power purchase [ E/F *10 ] Rs/KWh 3.25
H Power purchase units disallowed by the Commission MU 616
I Disallowed Power purchase cost (G * H / 10) Rs Cr 200.40
6.39 Based on above, the summary of power purchase cost proposed by the Petitioner
and approved by the Commission has been presented in the following table.
Table 71: Approved Power Purchase Cost from all sources (Rs Cr)
Particulars
Submitted
now by
Petitioner
Approved
now by
Commission
Power Purchase from JKSPDC 485.73 459.55
Power Purchased from CGSs (including short term/UI) 3,173.63 3,043.00
Interstate Transmission charges 352.07 352.07
Renewable purchase 0.00 246.66
Cost of power purchase disallowed 0.00 -200.40
Total Power Purchase cost 4,011.43 3,900.88*
Quantum of power purchased from JKSPDC & CGSs (Gross) 12,584 11,996
Average rate of power purchase 3.19 3.25 **
Note: * This is subject to true up based on audited data and approval of additional budget
allocation by the State Government against the approved allocation of Rs 3667.50 Cr for
FY 2014-15 in the State budget;
** Per unit power purchase rate is higher as the Commission has considered cost of power
purchase to meet RPO target by JKPDD-D.
Water Usage Charges
Petitioner’s Submission
6.40 The petitioner has projected the water usage charges as Rs 305.65 Cr for
JKSPDC generating stations same as approved by the Commission in the last
year’s MYT Order. While, the water usage charges of NHPC generating stations
in the state have been projected at Rs 200 Cr for FY 2014-15.
Commission’s Analysis
6.41 As the water usage charges of JKSPDC for FY 2014-15 are in line with charges
approved by the Commission in the last year’s MYT Order, the Commission
approves the same charges as proposed by the petitioner with the direction that
the funds to discharge this liability will be provided to the utility by the
Government over and above the budgetary allocation for power purchase as
claimed by the Petitioner.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 103
6.42 In the case of NHPC, the Commission approved the charges as per the actual
bills submitted by the petitioner for FY 2013-14 to be Rs 130.55 Cr. The
Commission approves the same amount for FY 2014-15, subject to true-up on
submission of actual bills. Accordingly, total water usage charges approved by
the Commission for FY 2014-15 are Rs. 436.20 Cr which is to be provided to the
Petitioner by the State Govt. in addition to the budget for power purchase.
Operation & Maintenance Expenses
Petitioner’s Submission
6.43 The Employee Expenses, Administrative and General Expenses and R&M
Expenses that have been projected or FY 2014-15 based on the revised estimates
of FY 2013-14 and escalated as per the methodology adopted by the Commission
in the MYT Order.
Table 72: Projected Operation and Maintenance Expenses (Rs Cr)
Particulars. Submitted now
by Petitioner
Employee Expenses 502.77
Admin & General Expenses 22.22
R&M Expenses 31.25
Total 556.24
Commission’s Analysis
6.44 The component wise O&M expenses are approved by the Commission in
accordance with Regulation 22 of the JKSERC (Multi Year Distribution Tariff)
Regulations, 2012.
6.45 The employee expenses have been determined on the basis of norms specified in
Regulation 22.1 of the aforesaid Regulations. The approved base norm of
employee expenses has been normatively escalated by CPI inflation of 9.50% to
arrive at the normative employee expenses of Rs 442 Cr after considering the
impact of provisions for arrears of 6th Pay Commission for FY 2014-15.
Table 73: Approved Employee Expenses FY 2014-15 (Rs Cr)
Description Units Norm FY 2014-15
EMPb (A) Rs Cr/ employee 0.026
CPI Inflation rate (B) % 9.50%
Number of employees (C) No.
13,178
EMPn (D = A * B) Rs Cr/ employee
0.031
Employee Expenses without provisions (E = C * D) Rs Cr
404.62
Arrears for 6th Pay Commission Rs Cr
42.81
Allocated to Distribution Rs Cr
37.38
(87% of total) (F)
Employee expenses with provisions (G = E + F) Rs Cr
442.00
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 104
6.46 The Administrative and General (A&G) expenses have been determined on the
basis of norms specified in Regulation 22.3 of the aforesaid Regulations. The
approved base norm of A&G expenses has been normatively escalated by WPI
inflation of 7.42% to arrive at the normative A&G expenses of Rs 23.79 Cr for
FY 2014-15.
Table 74: Approved A&G Expenses FY 2014-15 (Rs Cr)
Description Units Norm 2014-15
A&Gb (A) Rs Cr/ employee 0.002
WPI Inflation rate (B) % 7.42%
Number of employees (C) No. 13,178
A&Gn (D = A * B) Rs Cr / employee 0.0018
A&G Costs (E = C * D) Rs Cr 23.79
6.47 The Repair and Maintenance expenses (R&M) expenses have been determined
on the basis of norms specified in Regulation 22.2 of the aforesaid Regulations.
Accordingly the approved K factor of 1.34% has been applied on the opening
balance of GFA to arrive at the R&M expenses of 38.98 Cr for FY 2014-15.
Table 75: Approved R&M Expenses FY 2014-15 (Rs Cr)
Description Units Norm 2014-15
Kb % 1.34%
Opening GFA for JKPDD-D as per
Order dated 22nd
March 2013 Rs Cr 2,917.22
Approved R&M costs Rs Cr 38.98
6.48 The approved O&M expenses for FY 2014-15 have been summarized in the
following table:
Table 76: Approved Operation and Maintenance Expenses (Rs Cr) FY 2014-15
Particulars
FY 2014-15
Approved in
MYT Order
Sub. now by
Petitioner
App. now by
Commission
Employee Expenses 410.63 502.77 442.00
Admin & General Expenses 21.60 22.22 23.79
R&M Expenses 41.19 31.25 38.98
Total 473.42 556.24 504.76
Capital expenditure
Petitioner’s Submission
6.49 The Petitioner in its petition has vaguely indicated that “revised capital
expenditure projected for the control period includes Rs 1300 Cr for RGGVY
Phase –II starting FY 2014-15. Rs 1665.25 Cr for R-APDRP is under
implementation and new distribution works are State funded schemes”.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 105
Commission’s Analysis
6.50 The proposal of the Petitioner being vague, repeated directions were issued to
submit the detailed capital investment plan for FY 2014-15 warranting changes if
any in the capital investment plan already approved in the MYT Order dated
25th
April 2013. The Utility failed to provide the details.
6.51 The Commission has therefore provisionally considered the capital expenditure
as per the MYT Order dated 25th
April 2013. In addition to above, the
Commission has also provisionally considered the capital investment approved
towards procurement and installation of consumer and system meters as per the
Suo-moto order dated 21st April 2014 for FY 2014-15 i.e. Rs. 99.31 Cr. The
details of approved capital investment for FY 2014-15 are provided in the table
below:
Table 77: Approved Capital Investment FY 2014-15 (Rs Cr)
Particulars
FY 2014-15
App. in MYT
Order
App. now by
Commission
RGGVY Projects 0.00 0.00
PMRP Projects 0.00 0.00
R-APDRP Projects 800.00 800.00
New Distribution Works 81.49 81.49
REC Funded Projects 50.00 50.00
Others (Metering as per Suo –moto Order dated 21 April 2014) 44.84 99.31
Total 976.33 1030.80
Capitalization
Petitioner’s Submission
6.52 The Capitalization schedule for proposed capital expenditure during FY 2014-15
has been submitted as follows:
Table 78: Proposed Capitalisation schedule (Rs Cr) FY 2014-15
S. No Particulars FY 2014-15
1 New Distribution Works 75.00
3 RGGVY Projects 300.00
4 R-APDRP Projects 500.00
5 REC Funded Projects 45.00
6 Others 15.00
Total 935.00
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 106
Commission’s Analysis
6.53 The Petitioner has failed to submit the requisite details as per the JKSERC
(Multi Year Distribution Tariff) Regulations, 2012 despite repeated reminders.
The Commission provisionally adopts the capitalization approved in the MYT
Order dated 25th
April 2013. The Commission further directs the Petitioner to
submit the scheme wise details of capital expenditure and capitalization for
FY 2014-15 by September 2014.
Table 79: Approved Capitalisation Plan for FY 2014-15 (Rs Cr)
Particulars
FY 2014-15
Approved
in MYT Order
Submitted now
by Petitioner
Approved now
by Commission
RGGVY Projects 87.11 300.00 87.11
PMRP Projects 0.00 0.00 0.00
R-APDRP Projects 552.28 500.00 552.28
New Distribution Works 56.26 75.00 56.26
REC Funded Projects 34.52 45.00 34.52
Others 30.96 15.00 30.96
Total 761.13 935.00 761.13
Depreciation
Petitioner’s Submission
6.54 The following table summarizes the projected depreciation cost for FY 2014-15
as submitted by the petitioner.
Table 80: Projected Depreciation FY 14-15 (Rs Cr)
Description Submitted Now by
Petitioner
Opening GFA 184.00
Additions to GFA 935.00
Closing GFA 1119.00
Depreciation Rate 3.60%
Depreciation Amount 40.28
Commission’s Analysis
6.55 The Commission has considered the opening GFA of FY 2014-15 as the Closing
GFA approved in the APR for FY 2013-14 i.e. Rs. 184 Cr.
6.56 As per Regulation 24(d) of the JKSERC (Multi-Year Distribution) Tariff
Regulations, 2012, depreciation shall not be allowed on assets funded by capital
subsidies, consumer contributions or grants. Thus, depreciation can be charged
only on the additions made to GFA which have been financed through loans
(i.e. portion of capitalization for REC funded projects). However, the petitioner
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 107
has charged depreciation to the entire portion of capitalization.
6.57 The Commission in accordance with the aforesaid Regulation approves the
depreciation charge only on the portion of capitalization for REC funded
projects.
6.58 The Commission has calculated the depreciation on the average GFA during the
year and not on the closing GFA as calculated by the Petitioner as the additions
to the GFA take place throughout the year and the average of the opening and
closing GFA provides a more realistic assessment of the depreciation.
Accordingly, the depreciation cost as provisionally approved by the Commission
for the given period has been summarized in following table.
Table 81: Approved Depreciation FY 2014-15 (Rs Cr)
Particulars Approved in
MYT Order
Submitted
now by
Petitioner
Approved
now by
Commission
Opening GFA 202.73 184.00 184.00
Additions to GFA 34.52 935.00 34.52
Closing GFA 237.25 1,119.00 218.48
Average GFA 219.99 651.50 201.22
Depreciation Rate 3.60% 3.60% 3.60%
Depreciation 7.92 40.28 * 7.24
Note: *JKPDD-D has computed depreciation on closing GFA i.e. Rs. 1,119.00 Cr instead of
average GFA as considered by the Commission.
Interest and Finance Charges
Interest on Loans
Petitioner’s Submission
6.59 JKPDD-D has adopted interest rate of 9.39% as applied by the Commission in
the MYT Order. Based on the projections of the REC loan balances, receipts and
payments, the interest and finance charges have been summarized below:
Table 82: Projected Interest and Finance charges FY 2014-15 (Rs Cr)
Particulars Submitted now by
Petitioner
Opening Loan balance 171.95
Receipts during the year 34.52
Repayments during the year 13.00
Closing Loan balance 193.47
Interest on Term Loans @ 9.39% 18.16
Commission’s Analysis
6.60 The Commission has approved the interest and finance charges on loan as per the
following approach:
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 108
(a) The outstanding balance of term liabilities as on 31st March 2014 has been
considered as per closing loan balance of FY 2013-14.
(b) Additions in loan during the year have been considered as per approved
capitalization for REC funded projects as stated in this Order.
6.61 The Commission has calculated the interest on the average balance of loans
during the year and not on the closing loan balance as calculated by the Petitioner
as the receipts and repayments take place throughout the year and the average of
the opening and closing loan balance gives a more realistic assessment of the
same. Moreover this methodology has also been adopted by the Commission in
the MYT Order dated 25th
April, 2013.
6.62 Based on the above approach, the following table summarizes the interest and
finance charges for FY 2014-15 as provisionally approved by the Commission
Table 83: Approved Interest and Finance charges FY 2014-15 (Rs Cr)
Particulars
FY 2014-15
Approved in
MYT Order
Submitted
now by
Petitioner
Approved
now by
Commission
Opening Loan balance 183.48 171.95 171.91
Receipts during the year 34.52 34.52 34.52
Repayments during the year 11.00 13.00 13.00
Closing Loan balance 207.00 193.47 193.43
Average Loan 195.24 182.71 182.67
Interest on Term Loans @ 9.39% 18.33 18.16 11.15
Interest on Working Capital
Petitioner’s Submission
6.63 JKPDD-D has projected the working capital and the interest on working capital
in accordance with the Regulation 26 of the JKSERC (Multi Year Distribution
Tariff) Regulation 2012 and methodology adopted by the Commission in the
MYT Order. The interest worked out on the working capital is as under:
Table 84: Projected Interest on Working Capital FY 2014-15 (Rs Cr)
Particulars Submitted now
by Petitioner
O & M Expenses for 1 month 46.35
Expected Revenue for two months 345.76
Maintenance Spares @ 40% of R&M expenses for 1 month. 1.04
Normative Working Capital 393.15
Rate of Interest 15%
Interest on Working Capital 58.97
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 109
Commission’s Analysis
6.64 The Commission has estimated the interest on normative working capital as per
Regulation 26 of the JKSERC (Multi Year Tariff Distribution) Regulations,
2012.
6.65 The normative working capital requirement has been calculated on the basis of
the following methodology:
a) O&M expenses for one month
b) Two months equivalent of expected revenue
c) Maintenance of spares @ 40% of R&M expenses for 1 month
d) Less: Security Deposit from consumers, if any
6.66 The interest on working capital has been considered as per the prevailing J&K
bank rate of 14.75% per annum.
6.67 Accordingly, the approved Interest on Working Capital for FY 2014-15 is as per
the following table:
Table 85: Approved Interest on Working Capital FY 2014-15 (Rs Cr)
Particulars
Approved
in MYT
Order
Submitted
now by
Petitioner
Approved
now by
Commission
O & M Expenses for 1 month 39.45 46.35 42.06
Expected Revenue for two months 304.29 345.76 350.02*
Maintenance Spares @ 40% of R&M expenses for
1 month. 1.37 1.04 1.30
Normative Working Capital 345.11 393.15 393.38
Rate of Interest 15.00% 15.00% 14.75%
Interest on Working Capital 51.77 58.97 58.02
Note: *Expected revenue from sale of power as approved by the Commission is higher than
projected by JKPDD-D, accordingly, working capital requirements is approved slightly higher by
the Commission.
Return on Equity
Petitioner’s Submission
6.68 The Petitioner has not proposed any return on equity.
Commission’s Analysis
6.69 The Commission accepts the submission made by the Petitioner and has not
approved any return on equity
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 110
Intra-state transmission charges
Petitioner’s Submission
6.70 The Intra-state transmission charges have been considered the same as approved
by the Commission in the last year’s MYT Order i.e. Rs. 128.11 Cr.
Commission’s Analysis
6.71 The Commission has considered the intra-state transmission charges as per the
approved ARR for JKPDD-T for FY 2014-15 i.e. Rs. 113.49 Cr as per APR
Order for JKPDD-Transmission dated 20th June 2014.
Non-tariff Income
Petitioner’s Submission
6.72 The petitioner has projected the non-tariff income for FY 2014-15 at Rs. 14.80
Cr after considering 5% increase in the revised estimate for FY 2013-14.
Commission’s Analysis
6.73 Since the projections for the Non-tariff income are as per the guidelines
mentioned in the MYT Order dated 25th
April 2013, the Commission accepts the
submission made by JKPDD-D and approves non-tariff income for FY 2014-15
as Rs. 14.80 Cr.
Aggregate Revenue Requirement (ARR) for FY 2014-15
6.74 Based on the various components as discussed above, the ARR for the
FY 2014-15 as submitted by the Petitioner and as approved by the Commission
has been summarized in the following table.
Table 86: Summary of ARR for FY 2014-15 (Rs Cr)
Particulars
FY 2014-15
Submitted
now by
Petitioner
Approved
now by
Commission
Power Purchase Cost 4,011.43 3,900.88*
Water usage charges (JKSPDC+NHPC). 505.65 436.20 #
Intra-state transmission Charges 128.11 113.49
Operation and Maintenance Cost 556.24 504.76
Interest on loans 18.16 17.15
Depreciation 40.28 7.24
Interest on Working capital 58.97 58.02
Total Costs 5,318.77 5,037.75
Add: Return on Equity 0.00 0.00
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 111
Particulars
FY 2014-15
Submitted
now by
Petitioner
Approved
now by
Commission
Less: Non-Tariff Income 14.80 14.80
Aggregate Revenue Requirement 5,303.97 5,022.96
Note: * This is subject to true up based on audited data and approval of additional budget
allocation by the State Government against the approved allocation of Rs 3667.50 Cr for
FY 2014-15.
#Note: This is subject to providing of additional budgetary allocation by the State Government,
over and above the power purchase cost.
Revenue from Sale of Power at Existing Tariffs
Petitioner’s Submission
6.75 The Petitioner has submitted the revenue from sale of power on the basis of
revised estimates and projections of energy sales and prevalent tariff for supply
to various categories of consumers. The following table summarizes the
category-wise revenue from sale of power at existing tariff as proposed by the
Petitioner:
Table 87: Revenue from sale of power at existing tariff (Rs. Cr)
Commission’s Analysis
6.76 The Commission has approved the sales and demand for FY 2014-15 in
accordance with the Regulations 16 & 17 of the JKSERC (Multi Year
Distribution Tariff) Regulations, 2012 whereas the revenue has been calculated
as per the prevailing tariffs approved in the MYT Order for FY 2013-14 to
FY 2015-16.
6.77 The energy sales approved by the Commission for FY 2014-15 is 6,504 MU and
the approved revenue realization at existing tariff and 100% collection efficiency
works out to Rs 2,100.11 Cr. The following table summarizes the consumer
S. No Consumer Category Submitted now by
Petitioner
1 Domestic 568.45
2 Non Domestic / Commercial 180.48
3 Agriculture 88.70
4 State / Central Govt. Department 312.98
5 Public Street Lighting 22.33
6 LT industrial Supply 106.45
7 HT Industrial Supply 235.61
8 HT-PIU Industrial Supply 45.63
9 LT Public Water Works 215.13
10 HT Public Water Works 43.10
11 General Purpose Bulk 81.14
Total 1900.01
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 112
category wise revenue from Sale of Power at existing tariff as approved by the
Commission:
Table 88: Approved Revenue assessed from sale of power at existing tariff (Rs Cr)
S. No Consumer Category Approved now
by JKSERC
1. Domestic 662.93
2. Non - Domestic/ Commercial 214.11
3. State/ Central Govt. Departments 308.82
4. Agriculture 103.22
5. Public Street Lighting 23.81
6. LT Public Water Works 197.58
7. HT Public Water Works 51.90
8. LT Industrial Supply 107.44
9. HT Industrial Supply 277.10
10. HT PIU 57.65
11. Bulk Supply 95.55
Total 2,100.11
Revenue Gap
Petitioner’s Submission
6.78 The Petitioner submitted that based on the assessed revenue realization, the
revenue gap at existing tariff for FY 2014-15 works out to Rs 3403.96 Cr.
Commission’s Analysis
6.79 Based on the revenue realization calculated as per the energy sales and cost per
unit approved in this Order, the revenue gap approved for FY 2014-15 works out
to Rs. 2,922.85 Cr as summarized in the following tables:
Table 89: Approved Revenue Gap at Existing Tariffs FY 2014-15 (Rs Cr)
S.
No Description
Approved in
MYT Order
Submitted now
by Petitioner
Approved now
by Commission
1 Aggregate Revenue
Requirement. 4150.44 5,303.97 5,022.96
2 Revenue Assessed 1825.72 1,900.01 2,100.11
3 Revenue Gap 2324.72 3,403.96 2,922.85
6.80 Further, as per the approach adopted by the Commission for cost coverage in its
previous Tariff Orders and for APR for FY 2013-14, the Commission has
determined ACOSAL, ACOSZL and ACOSPL for FY 2014-15.
6.81 For computation of average cost of supply at different loss levels, the
Commission considered the following:
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 113
(c) Average Cost of Supply at Approved Loss (ACOSAL): The Commission
has calculated the ACOSAL by dividing the overall ARR of the utility by the
approved energy sales quantum (units) for any financial year.
(d) Average Cost of Supply at Zero Loss (ACOSZL): The Commission has
calculated the ACOSZL by dividing the overall ARR of the utility by the
quantum (units) of power purchased for any financial year.
(e) Average Cost of Supply at Prudent Loss (ACOSPL): The Commission
has calculated the ACOSPL by dividing the overall ARR of the utility by the
quantum (units) of energy that would have been billed corresponding to the
prudent level of T&D losses.
(f) Prudent level of T&D losses: The Commission has considered T&D
losses of 23.65% as the prudent level of T&D losses (the average T&D loss
at the national level as per the Central Electricity Authority).
5.1 It is also pertinent to mention here, that even though the Commission determines
ACOSPL i.e. average cost of supply at prudent loss levels, it is a benchmark
figure aimed to move tariffs in direction of cost recovery; however same has to
be matched by performance and efficiency improvement by the JKPDD-D. At
present, the tariffs in the State are fixed to recover ACOS at Zero Losses only.
5.2 The following table summarizes ACOSAL, ACOSZL and ACOSPL as proposed
now by the Petitioner and approved now by the Commission for FY 2014-15:
Table 90: Projected and approved average COS for FY 2014-15 (Rs/KWh)
Sl.
No
.
Particulars Derivation
Submitted
now by
Petitioner
Approved now
by Commission
A Energy Sales (MU) - 6,323 6,504
B T&D Losses (%) - 48.24% 43.76%
C Power Purchase Quantum (MU) - 12,217 11,564
D Aggregate Revenue Requirement (Rs Cr) - 5,303.97 5,022.96
E COS as actual / approved losses (CoSAL)
(Rs/KWh)
[ E = D/ A * 10 ] 8.38 7.72
F CoS at Zero Losses (CoSZL) (Rs/KWh) [ F = D / C * 10 ] 4.34 4.34
G CoS at Prudent Losses (CoSPL) (Rs/KWh) [ G = D/ (C * (1-
H)) *10 ] - * 5.69
H Average realization rate 3.00 3.23
Note: * The Petitioner has not submitted any estimates for prudent loss levels.
Note 2: The prudent loss level for FY 2013-14 is considered as 23.65% (as per monthly statistics by CEA,
www.cea.nic.in)
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 114
CHAPTER 7: TARIFF REVISION FOR FY 2014-15
7.1 This section summarizes the tariff revision proposal for FY 2014-15 to meet the
projected revenue gap at existing tariffs as submitted by the Petitioner and as
approved by the Commission.
No Tariff hike for FY 2014-15
Petitioner’s Submission
7.2 The Petitioner has not proposed any tariff hike for FY 2014-15 and proposes to
retain the tariff approved by the Commission in the last year’s MYT Order. It has
proposed to meet the revenue gap for FY 2014-15 through financial assistance
from the J&K Government.
Commission’s Analysis
7.3 The Petitioner has not proposed any tariff hike for FY 2014-15 and has submitted
that it would meet the revenue gap through financial assistance from the State
Government. In terms of the requirement of Section 59 of the Act, the Petitioner
being a State owned utility was directed by the Commission to produce an
authority letter that the State Govt. shall be meeting the revenue gap. The
Director Finance, JKPDD vide letter no. No. PDD/II/AC/86/2012 dated
12th
June 2014 has informed the Commission that “”JKPDD-D shall be
purchasing power during FY 2014-15 for an amount of Rs. 3667.50 Cr as
provisioned in the State budget. Revenue gap worked out on this cost basis shall
be met through the State budget”. The Commission accordingly does not approve
any tariff hike for FY 2014-15 and Orders the tariff approved in the MYT Order
dated 25th
April 2013 to remain applicable till 31st March 2015 except to the
extent as modified in this Order or unless amended or modified or extended by an
order of this Commission.
7.4 The Commission also directs that JKPDD-D should increase its revenue
realization by being more efficient in bringing down T&D loss levels and
improving billing and revenue collection by resorting to the measures suggested
by the Commission.
Introduction of KVAh tariff
Petitioner’s Submission
7.5 The JKPDD-D proposes to introduce KVAh Tariff for connected loads above
20KW for some categories for better management of reactive power at all voltage
levels with an aim to encourage customers to initiate the steps to improve their
power factor.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 115
7.6 The KWh and KVAh tariffs are currently proposed to be introduced in energy
charges only and are proposed to be kept at par with each other so that at unity
power factor there is no disparity in the charges paid by the consumers in the
same category for same consumption.
Commission’s Analysis
7.7 The Commission agrees with the Petitioner’s view that KVAh based tariff is a
better approach due to better efficiency and transparency. The Commission in its
Tariff Order dated 16th April 2012 has also directed that the KVAh based tariffs
should be gradually extended to all three phase consumers after suitable tri-
vector meters are installed.
7.8 However, in the current scenario wherein even 100% metering is not done and
proposal at KVAh based tariffs is not available, the introduction of KVAh based
tariffs would not have the likely impact of improving the power factor.
7.9 Further, even though the Petitioner submits that it has the requisite infrastructure,
it failed to provide any details to the Commission. Accordingly, the Commission
for the time being has not approved the Petitioner’s proposal for levy of KVAh
based tariff for proposed classes of consumers.
7.10 It further directs the Petitioner to submit status of preparedness of installation of
tri-vector meters for all consumers proposed to be shifted to KVAh based
metering along with the impact on consumer’s revenue with the next tariff
petition for consideration by the Commission and it will be considered for
implementation w.e.f. FY 2015-16 provided all the requisite infrastructure is in
place by then.
Fine for using Incandescent Lamps
Petitioner’s Submission
7.11 In exercise of the powers conferred by section 16 of J&K Energy Conservation
Act, 2011, the Government of Jammu & Kashmir vide Govt. Order No. 34 PDD
of 2013 dated 12th
December 2013 has made mandatory use of Compact
Fluorescent Lamps (CFLs) and has banned the use of Incandescent Lamps in all
new buildings constructed in Government Sector/ Government Institutions/
Public Sector Units/ Autonomous bodies/ Commercial Establishments for
efficient use of energy and its conservation.
7.12 In light of the order the JKPDD-D proposes on spot imposition of fine in case
Incandescent Lamps are found in use at places mentioned in the order. The fine
proposed is as under:
c. Rs 500 for Lamps upto 200W
d. Rs 1000 for Lamps above 200W
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 116
Commission’s Analysis
7.13 The Commission scrutinized the Order issued by Government of Jammu &
Kashmir vide Order No. 34 PDD of 2013 dated 12th February 2013 and also
examined the relevant provisions enshrined in the J&K Energy Conservation Act,
2011.
7.14 The Clause 24 (1) of Chapter VI ‘Penalties and adjudication’ of the J&K Energy
Conservation Act, 2011 states:
“If any person fails to comply with the provisions of clause (e) or clause (f) or
clause (u) or clause (k) or clause (m) or clause (n) or clause (p) or clause (r)or
clause (s) of Section 12, he shall be liable to penalty which shall not exceed Rs
10,000/- for each such failure and in the case of continuing failure, with an
additional penalty which may extend to Rs 1000/- for every day during which
such failure continues.
Provided that no person shall be liable to pay penalty within five years from the
date of commencement of the Act”
7.15 A reading of the stated provision makes it amply clear that even though utility/
State Government may levy penalty for non-compliance with the provisions of
the Act, no person shall be liable to pay any penalty within a period of five years
from the date of commencement of the J&K Energy Conservation Act, 2011. As
a period of five years from the commencement of the aforesaid Act has not yet
elapsed, the proposal of the Utility to levy a penalty is in contravention to the
provisions of the aforesaid Act. Therefore, the Commission directs the Petitioner
to re-examine the proposal.
7.16 Further, the Commission directs the Utility to launch an intensive and sustained
public awareness campaign on energy conservation pressing for use of CFLs/
LEDs. The Utility should also lay stress on using energy efficient appliances
including geysers, heaters, street lamps, etc. The utility should also avail the
assistance available for such programs from the concerned central government
agency.
Rationalization in flat rate tariff slab of unmetered domestic category
Petitioner’s Submission
7.17 The Petitioner has proposed rationalization in tariff slab for unmetered domestic
category (above 1 KW- upto 2KW) as large number of consumers are reluctant to
revise their agreements in view of steep hike proposed by the Commission in the
MYT Order dated 25th
April 2013.
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 117
Table 91: Flat Rate Tariff slab for Unmetered domestic category
Flat Rate Tariff Slab for
Unmetered Domestic category
Approved by JKSERC
FY 2013-14
Proposed by JKPDD for
FY 2014-15
Above 1 KW- Up to 2 kW Rs. 1145 per month
Rs. 1145 per month (in steps of Rs. 140 for
every additional ¼ kW or part thereof above
1 kW)
Commission’s Analysis
7.18 The Commission in previous orders had agreed to the proposal of the JKPDD-D
to increase flat rate tariffs to discourage unmetered consumption. However, since
quantum jump from 1 kW to 2 kW is reported by the Petitioner to be steep
discouraging the consumers to disclose the load, the Commission approves the
revised tariff schedule for the said flat rate domestic consumers as under.
Table 92: Revised Flat Rate Tariff slab for Un-metered domestic category
approved now by the Commission
Flat Rate Tariff Slab for
Unmetered Domestic category
Existing tariff as per
approved in MYT order
dated 25th April 2013
Approved now by JKSERC for
FY 2014-15
Above 1 KW- Up to 1¼ kW Rs. 1145 per month Rs. 725 per month
Above 1¼ kW - Up to 1½ kW Rs. 1145 per month Rs. 865 per month
Above 1½ kW - Up to 1¾ kW Rs. 1145 per month Rs. 1005 per month
Above 1¾ kW - Up to 2 kW Rs. 1145 per month Rs. 1145 per month
Load limit for LTIS- II consumer category
7.19 In the MYT Order dated 25th April, 2013 to provide relief to seasonal industries
viz “Atta Chakkis, Rice huskers, Oil expellers, cotton grinning” operating in un
organized rural sector and having a load up to 10 HP, the Commission had
introduced a separate category LTIS-II. This category was charged lower fixed
charges in comparison to LTIS-I consumer category. The Objectors during the
public hearing pleaded that restricting the load up to 10 HP has not been of much
advantage to such unit holders as in most cases the load exceeds 10 HP. They
pleaded for increasing the load limit up to 20 HP in view of limited period of
operation / seasonal operation of such units in rural areas which are subjected to
load shedding unlike industrial units in the organized sector which are being
provided comparatively reliable power.
Petitioner’s Response
7.20 The Petitioner stated that while there was no justification for allowing such a
dispensation to band saw owners but in the case of other seasonal units covered
under LTIS– II consumer category, the Commission may take an appropriate
view.
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Commission’s View
7.21 Keeping in view the objective behind introduction of LTIS-II consumer category
and in view of the explanation given, the Commission agrees to increase the load
limit to 15 HP in such cases only as are covered under LTIS-II consumer
category at present and are duly authorized to operate by the competent authority.
Revision in miscellaneous charges
Petitioner’s Submission
7.22 The Petitioner has submitted that there has been a steep hike in the cost of
materials/ labour and services, while the miscellaneous charges have not been
revised for many years. The Petitioner submitted a proposal to revise the
Miscellaneous Charges as per the following table:
Table 93: Proposed Schedule of Miscellaneous Charges
Sl. No Particulars Existing
Charges
Proposed
Charges
1 For single phase and three phase connection upto 5
kW
1.a Changing Meter Board in same premises. Rs 60.00 Rs 300.00
1.b Changing Meter at Consumers request in same premises. Rs 60.00 Rs 300.00
1.c Resealing PDDs cut-out in Consumers premises. Rs 20.00 Rs 200.00
2. Re –sealing of Meters, Maximum Demand Indicators
in Consumers premises
2.a Single Phase LT Connection. Rs 50.00 Rs 200.00
2.b Three phase LT Connection. Rs 70.00 Rs 400.00
2.c HT Connection Rs 700.00 Rs 1500.00
3. Meter Testing charge at Consumers request
3.a Single phase LT Meter. Rs 50.00 Rs 250.00
3.b Three phase 4W/3W Meter without CT. Rs 85.00 Rs 350.00
3.c Three phase 4W/3W Meter with CT Rs 300.00 Rs 1000.00
3.d LT CT Meter Rs 120.00 Rs 1000.00
3.e HT Meter along with metering equipment (CT/PT). Rs 1200.00 Rs 4000.00
4. Special meter reading
4.a LT Connection Rs 25.00 Rs 500.00
4.b HT Connection Rs 220.00 Rs 500.00
5. Replacement of burnt Meter (if burnt due to Consumers
fault)
Cost of
Meter+15%
supervision
charges
Cost of
Meter+15%
supervision
charges
6. Fuse Off call charges-Replacement
6.a PDD’s cut out fuse Rs 20.00 Rs 200.00
6.b LT Consumers fuse Rs 20.00 Rs 200.00
7. Replacement of missing Meter card Rs 15.00/card Rs 500/card
8. Replacement of broken glass of Meter Rs
35.00/glass Rs 500/glass
9. Reconnection/disconnection charges
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Sl. No Particulars Existing
Charges
Proposed
Charges
9.a LT Consumers Rs 25.00 Rs 300.00
9.b HT Consumers Rs 170.00 Rs 1000.00
10. Rechecking of installation on request of Consumer
10.a Single phase Rs 75.00 Rs 500.00
10.b Three phase Rs 250.00 Rs 500.00
11. Re-rating of equipment
Rs.
120/equipme
nt
Rs.
120/equipmen
t
12. Supervision charge for Service Connection(if service
line laid by Consumer through licensed Contractor)
12.a Single phase LT connection Rs 175.00 Rs 1500.00
12.b Three phase LT connection Rs 400.00 Rs 1500.00
12.c Loop LT connection Rs 95.00 Rs 1500.00
13. Parallel Operation charge for availing Grid support
by CPP
Rs 18/kVA per
month on the
installed
capacity of
CPP
JK SERC
Regulations
14. Shifting of connection
Actual
material
cost+15%
supervision
charge
Actual
material
cost+15%
supervision
charge
15. Hiring of Utility’s plant and equipment
15.a For initial hire agreement period
1% pm on
current
schedule of
rates
2.5% pm on
current
schedule of
rates
15.b For subsequent period of hire agreement Twice of
15.a Twice of 15.a
15.c For LT consumers(more than 100 HP) converting to HT Same as 15.a
& 15.b
Same as 15.a
& 15.b
16 Transfer of Name
16.a LT Rs. 100.00 Rs 300.00
16.b HT Rs. 600.00 Rs. 600.00
17. Booklet for HT/LT Tariff Rs. 20.00 Rs. 150.00
18. Connection/disconnection charges for temporary
connection
18.a LT temporary connection Rs. 120.00 Rs. 300.00
18.b HT temporary connection Rs. 600.00 Rs. 1000.00
Commission’s Analysis
7.23 The Commission has scrutinized the proposal submitted by the Petitioner for
revision of the schedule of miscellaneous charges. During the public consultation
process, several stakeholders raised and submitted objections regarding the steep
hike proposed by the Petitioner in the schedule of miscellaneous charges. The
Objectors were of the view that only justified costs on account of inflation may
be allowed to the Petitioner.
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7.24 The Commission analyzed the schedule of miscellaneous charges proposed by
the Petitioner by benchmarking the proposed charges against the charges levied
in neighboring states having similar characteristics i.e. Himachal Pradesh,
Uttarakhand and Punjab and based on the inflationary escalation in miscellaneous
charges from the time of last revision of such charges. It was found that in many
cases the charges proposed by the Petitioner were substantially higher than both
inflationary increases and the charges prevailing in neighboring States. The
Commission has considered the inflationary increases and the prevailing rates in
neighboring states while also keeping in mind the conditions peculiar to the State
of J&K while approving the schedule of miscellaneous charges. Accordingly, the
approved schedule of miscellaneous charges has been summarized in
Chapter 11: Schedule of Miscellaneous Charges of this Order.
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CHAPTER 8: DIRECTIVES
8.1 The Commission takes strong objection to non-compliance of its directives by
the Petitioner. The Commission shall be forced to take punitive measures against
the Petitioner, under Sections 102 and 106 of the J&K Electricity Act, 2010, for
its inaction.
8.2 The status of compliance and Commission’s views on each of the directives
given in previous Tariff Orders is tabulated below:
Directive/Issue Summary
Status of compliance against directives issued in MYT Order from FY 2013-14 to FY 2015-16
System Studies &
Feeder-Wise
Energy Audit
Summary of Directive issued:
The utility was directed to carry out the system studies for determination of transmission loss in
the system and also conduct feeder-wise energy audit and consumer indexing for estimating the
base T&D loss level. The commission directs the petitioner to submit a report containing a
holistic loss reduction plan within 6 months of issue of the order on “Business Plan for three
year MYT period from FY 2013-14 to FY 2015-16 dated 22nd
March 2013.
JKPDD’s response:
JKPDD is monitoring losses on all feeders regularly. The Department is ring fencing 11kV and
33kV feeders and is also in the process of distribution transformer metering. With the
commissioning of data centres at Jammu and Srinagar the losses on the feeders shall be
monitored online.
Commission’s views:
The Commission is of the view that even after repeated directives the Petitioner has not
submitted report on actual feeder-wise T&D losses and measures to reduce losses in future.
This shows lack of seriousness on part of the Petitioner and is highly disturbing given that the
T&D losses in the State are one of the highest in the country. In view of above the Commission
again directs the Petitioner to submit report on actual losses estimated and loss reduction plan
within three (3) months from the date of issue of this Order.
Detailed
Investment Plan
for New
Distribution
Works
Summary of Directive issued:
The commission directs the Utility to submit the detailed investment plan along with the cost
benefit analysis for the proposed new distribution works to be submitted along with the Annual
Performance Review (ARR) & Tariff petition for FY2014-15.
JKPDD’s response:
The information shall be submitted separately
Commission’s views:
The Utility is yet to submit the detailed investment Plan for distribution works. The non-
compliance of the directives by the Petitioner is highly objectionable and in case the Petitioner
fails to comply with the directives, the Commission shall disallow all capital expenditure for
new distribution works. Accordingly, the Commission again directs the Utility to submit the
plan within three (3) months from the date of issue of this Order. In case of non-compliance
the Commission will be constrained to take penal action.
Audit for
metering
Summary of Directive issued:
The Commission directs the Utility to conduct an independent audit of actual consumers
metered and consumers pending for metering during the MYT period and submit quarterly
reports within the first week of succeeding month of the quarter to the commission for
monitoring purposes.
JKPDD’s response
The Department is regularly doing this exercise and the data remains available with the
department and shall be communicated to Hon’ble Commission.
Commission’s views
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Even though the Petitioner states that it is complying with the directives given by the
Commission, but the fact remains that the Commission has not received any report in this
regard. The Commission directs the Petitioner to submit the directive-wise status report within
one (1) month from the date of issue of this Order. Non-compliance will result in penal action
by the Commission.
Progress
Monitoring
Report
Summary of Directive issued:
The petitioner is directed to submit quarterly information on each of all the existing schemes
approved by the Commission along with the Detail Project Report of all new schemes approved
by the Commission which are being implemented in the ensuring quarter. The information to be
submitted should be consistent with the DPR for the respective schemes. Any scheme without a
detailed DPR would be disallowed by the Commission. The petitioner is directed to submit the
desired information along with DPRs for new schemes with the first week succeeding every
quarter on cumulative basis. Non-compliance in this regard shall invite penal action.
JKPDD’s response:
The Petitioner again submitted that it will comply with this directive.
Commission’s Views:
The Commission directs the Utility to submit quarterly compliance report. These shall be
submitted in the month of July, October, January and April each year.
Meter Testing
arrangements
Summary of Directive issued:
The commission directs the JKPDD-D to put in place an accredited independent third party
meter testing arrangements in all districts and also prepare norms for allowing consumer to
purchase their own meters of approved specification of competent authority duly tested and
certified by such accredited third party testing agencies. In –situ meter testing facilities may be
included at Divisional & Sub-Divisional levels in J&K
JKPDD’s response:
The JKPDD through a request of empanelment has already invited twice the NABL accredited
third party meter testing agency for empanelment with the Department for carrying-out in-
house and in-situ testing of consumer meters. One agency M/S Spectro Analytic Laboratories
has already been empanelled and some more agencies have applied when second empanelment
notice was issued and their empanelment is under process. The agencies have been requested
to mobilize their resources in the state.The department has also floated tenders for
establishment of meter testing laboratories at Srinagar and Jammu. The Department in touch
with National Physical Laboratory, New Delhi and CPRI for seeking technical expertise in this
regard.
Commission’s Views:
The commission notes the progress made by the Petitioner to meet the above directive and
further directs to submit actual status of meter testing facilities set up within the State together
with the total category wise meter test centers along with next tariff petition.
Theft and
Pilferage of
Electricity
Summary of Directive issued:
Utility should constitute a task force in each circle to carry out massive raids on a regular basis
to check pilferage of electricity. The officers in charge of the concerned Circles shall have to be
made answerable in case of detection of theft/ pilferage of electricity in their areas of operation,
besides booking those consumers committing theft/pilferage and penal action taken against
them. The Commission further directs the Petitioner to submit the quarterly reports within first
week of the month succeeding the quarter on “Theft Detection & Fine Imposed/Realized” and
make available these reports in the public domain so that the efforts of the utility in curbing
theft can be reorganized by the masses.
JKPDD’s response:
JKPDD has already started a massive drive against power theft and defaulters across the state.
Special enforcement teams were constituted in the year 2012 in addition to routine inspection
squads which conducted inspections almost in every part of the state with results. 120834
inspections were conducted in the year 2012-13 and 2013-14 ending Dec., Rs 23.59 Cr fine
was imposed against the defaulters, Rs 14.89 Cr. has been recovered during that
period.Various news papers in the state have also reported on the drive carried out by the
department and drive is on.
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Commission’s Views
The Commission notes the compliance with the directive issued by the Commission and further
directs the Petitioner to submit report for past three years on actual cases of theft/ pilferage
identified, action taken and total amount recovered along with next tariff Petition.
Load Generation
Balance
Summary of Directive issued:
The Commission directed the petitioner to make the details of load shedding available in public
domain in advance and also submit to the Commission a Load Generation Balance Report
(LGBR) on power procurement planning based on actual hours of supply made to consumers
JKPDD’s response:
The department can provide 24X7 power supply to all the consumers across the state if the
consumers consume electricity as per their registered loads. Power curtailment becomes
inevitable when the consumers use unregistered and unauthorised loads. Use of such loads,
overloads the system and put constraints at every level of the system. However the JKPDD
gives wide publicity to the scheduled curtailment programs through news papers and also post
it on the official websites of the department. JKPDD has also furnished the reply to a petition
in this regard before the Hon’ble Commission.
Commission’s Views
Even though the Petitioner widely circulates the load shedding details, it failed to submit the
LGBR on power procurement planning based on actual hours of supply made to consumers to
the Commission. Accordingly, the Commission again directs the Petitioner to submit the LGBR
report within three (3) months from the date of issue of this Order.
Energy
Awareness
Programme
Summary of Directive issued:
The commission directs the Utility to submit quarterly compliance report within first week of
the month succeeding the quarter under the “ Bureau of Energy Efficiency” sponsored schemes
including the Bachat Lamp Yojana
JKPDD’s response
The JKPDD has already held a joint workshop with Bureau of Energy Efficiency, New Delhi, in
which representatives of Govt department, Corporations, Trade, Industry, Civil Society were
invited and schemes sponsored by BEE were discussed including Bachat Lamp Yojana. The
JKPDD through an expression of interest (EOI) had invited all the agencies empanelled with
B.E.E for launching Bachat Lamp Yojana in the state of Jammu & Kashmir but there was no
response from any agency in view of some global recession and in carbon credits. However the
department on its own is exploring the possibility of distributing CFLs according to the
resources available
Commission’s Views
While the Commission appreciates the steps taken by the Utility, however it further directs the
Utility to aggressively work towards general public awareness of this Programme and ensure its
implementation. Stress needs to be laid for use of energy efficient devices and LED lamps
Metering
Summary of Directive issued:
The commission directs the licensee to develop a comprehensive metering plan for completion
by end of FY 2015-16 and et it approved by the State Government with an undertaking of
support of GoJK on compliance of the relevant provisos of the Act by the licensee. Further the
Utility is directed to submit the State Government approved metering plan to the Commission
before the completion of existing deadline i.e. by 30th June 2013.
JKPDD’s response
JKPDD has made submissions in this regard in the present petition before the Commission.
Commission’s Views
The Commission vide Suo-moto Order dated 21st April 2014 issued specific directions to the
Petitioner in this behalf and accordingly directs JKPDD-D to meet the directives as issued in
the Suo-moto order by the Commission and submit quarterly progress reports to the
Commission
Segregation of
Cost
Summary of Directive Issued:
The commission directs the Utility to maintain asset data for opening GFA and the audit data
for both distribution and transmission function and submit the same to the Commission by 30th
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September 2013.
JKPDD’s response
It shall be submitted as part of Unbundling process
Commission’s Views
In absence of such details, the Commission is unable to accurately apportion the costs to
transmission and distribution functions of JKPDD as it also renders the projections for MYT
period inaccurate. Thus, the Commission directs the Petitioner to accelerate the process for
unbundling and submit segregated details of costs along with next tariff petition.
TOD tariff
Summary of Directive Issued
The Commission directs the Utility to submit the report on assessment of ToD Tariff including
consumption details of peak and off-peak periods for all HT consumers on a monthly basis
before 30th
September 2013.
JKPDD’s response
The department shall assess and report.
Commission’s Views
The Commission notes with concern that even after completion of over a year, the Petitioner
has not, till date submitted report regarding consumption of peak and off peak periods for all
HT consumers. The Commission shall undertake suo-moto penal action in case such attitude of
the Petitioner continues. The Commission again reiterates that the Petitioner submits a report
within One (1) month from the date of issue of this Tariff Order.
Demand Side
Management
Summary of Directive issued
The Commission notes that the petitioner failed to submit a detailed Demand Side Management
(DSM) plan along with the ARR & Tariff petition for the MYT control period from FY2013-14
to FY2015-16 as directed by the Commission earlier. Further, the J&K SERC (Multi Year
Distribution Tariff) Regulations, 2012 also provide that the petitioner should develop a
comprehensive power purchase and procurement plan after accounting for DMS plan. Thus, the
commission again directs the petitioner to submit a DSM Plan for approval of the Commission
by 30th
June 2013.
JKPDD’s response:
Although the department is working towards Demand Side Management plans, however a
comprehensive plan shall be submitted shortly.
Commission’s Views
The Commission again notes with concern that even after completion of over a year, the
Petitioner has failed to submit detailed DSM plan for the State. The Commission again
reiterates that the Petitioner shall submit a report within One (1) month from date of issue of
this Tariff Order.
Arrear Recovery
Summary of Directive Issued
The Commission reiterates its earlier directive that the Utility should submit quarterly reports
on arrears outstanding against each category of consumers. The Commission would like to
know the collection, billing and accounting of arrears of previous years in the revenue realized
of particular year. A complete detail of arrears and their realization from FY 2006-07 should be
made available to the Commission latest by 30th June 2013.
JKPDD’s response
JKPDD regularly prepares the list of consumers with arrears in all the categories. The list is
being published in the newspaper also. Such case are being referred to Mobile Magistrate also
on regular basis by the subordinate offices.
Commission’s Views
The Commission notes a little progress achieved by the Petitioner on compliance of the
directive, however the Petitioner has not submitted year wise recovery report on the arrears.
The Commission directs the Petitioner to submit the same within one (1) month from the date
of issue of this Tariff Order.
Actual Cost of
Supply
Summary of Directive Issued
JKPDD is directed to conduct a study to determine the actual cost of supply for each consumer
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category as per the methodology prescribed by this Commission in the J&K SERC (Multi Year
Distribution Tariff) Regulations, 2012 and submit the report by 30th September 2013.
JKPDD’s response
JKPDD shall undertake this exercise and report to the Commission.
Commission’s Views
The Commission again notes with concern that even after completion of over a year, the
Petitioner has till date not prepared a report and submitted to the Commission. The Commission
shall undertake suo-moto penal action in case such attitude of the Petitioner continues. The
Commission again reiterates that the Petitioner shall submit a report within One (1) month of
issue of this Tariff Order.
Low Load Factor
Summary of Directive issued
The Utility should undertake testing of all those consumers in non-domestic and LT Industries
categories whose monthly load factor is less than 1%. The Utility is also directed to undertake
the exercise of establishing the Load Factor Data base of the state and submit the report by 30th
Sept. 2013.
JKPDD’s response:
With the commissioning of Data centres at Jammu and Srinagar this exercise will
automatically be undertaken.
Commission’s Views
The Commission directs the Petitioner to submit compliance report within three (3) months
from date of issue of this Tariff order.
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New Directives Issued by the Commission
Metering Plan
8.3 As per the Suo-moto Order dated 21st April 2014 on metering plan for the
Petitioner to achieve 100% metering in State by end of FY 2015-16, the
Commission directs as follows:
(g) No further delay in achieving 100% current consumers metering would be
allowed beyond March, 2016. Any such delay would not only invite penal
action against the Respondents and would also call for suitable action from
the Commission declaring supply of electricity to unmetered consumers as
illegal in terms of the provisions of Section 49(1) of J&K Electricity Act
2001 and Commission’s orders issued from time to time.
(h) Further, JKPDD-D should establish and develop authentic third party meter
testing mechanism in the State as is required in terms of Section 44 of the
Act read with Chapter A5 of the Jammu and Kashmir State Electricity
Supply Code, 2011 and report compliance to the Commission with the next
Annual Performance Review Petition.
(i) JKPDD-D should evolve a comprehensive mechanism for closely
monitoring the implementation of proposed metering plan at various levels
particularly at the level of Administrative Department. The province-wise/
Circle-wise/Division-wise progress report in the light of the revised action
plan submitted by the Utility shall be submitted to the Commission on a
quarterly basis for review.
(j) Further, as there has been serious deviation from the mandate given by the
State Legislature under Section 49(1) of the Act 2010 for completion of
metering within a period of 2 years from the date of notification of the J&K
Electricity Act, 2010, the JKPDD-D need to place the facts before the State
Legislature for ratification of the extended dead line for achieving 100%
metering in the State.
Compliance to Renewable Power Purchase Obligation
8.4 The Commission notes with concern that even though the JKSERC (Renewable
Power Purchase Obligation, its Compliance and REC framework
Implementation) Regulations, 2011 mandates procurement of power from
Renewable Energy Sources (RES), the Petitioner has repeatedly failed to fulfill
its Obligation. The Commission, therefore directs JKPDD-D to chalk out a
comprehensive plan for fulfillment of the Obligation and ensure compliance.
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8.5 In order to make the compliance with RPO targets more effective, the
Commission directs the JKPDD-D to open a separate account for meeting the
annual fixed obligation of renewable energy, which includes carry forward
balances and purchase of RECs to meet shortfall, if any. This is necessary to
ensure the compliance of the relevant regulations. JKPDD-D shall review the
position with the Nodal Agencies periodically and report the progress to the
Commission. Further, the utilization of the funds created in this account shall be
decided by the utility in consultation with the Commission as per the relevant
regulations.
Area wise loss reduction plan
8.6 The Commission directs the Petitioner to submit the district-wise and circle-wise
loss reduction plan on the prescribed MYT formats along with next tariff
Petition. The failure to do so may invite penal action by the Commission.
Data on T&D losses to be made available on the website
8.7 The Commission directs the Petitioner to upload circle wise / feeder wise T&D
loss data with other relevant details on its website and report compliance within
two (2) months from the date of issue of this Order.
Implementation of KVAh tariffs
8.8 The Commission directs that the Petitioner to put in place the requisite
infrastructure for metering and billing on KVAh basis. The Petitioner is also
directed to submit the category wise status of KVAh compatible metering, impact
analysis of implementation on KVAh billing on each of the proposed consumer
category and category wise revenue impact of proposed KVAh billing vis-à-vis
the revenue at prevailing tariffs along with next tariff petition. The status of
reactive compensation at all levels of power system in J&K shall also be
furnished.
Submission of audited accounts
8.9 The Commission directs the Petitioner to submit audited accounts along with
next tariff petition for Truing up of expenses for FY 2013-14. In absence of
audited accounts, the Commission shall not provide any True up to the Petitioner.
Submission of list of consumers with arrears
8.10 The Commission directs the Petitioner to submit category-wise list of consumers
with arrears exceeding Rs. 1 Lac or two months energy bills, whichever is higher
as on 1st April 2014 along with steps taken to recover the arrears and actual
recovery status with the next tariff petition. Reasons for not effecting recovery
and allowing to pile up the same be also furnished.
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Details of Subsidy from State Government
8.11 The Commission is of the view that mere stating that the revenue gap shall be
met through financial assistance of the State Government is not enough.
Basically the Utility has to come up with the consumer category wise subsidy
provisions granted in advance by the State Government in accordance with the
provisions of Section 59 of the Act.
8.12 Accordingly, the Commission directs the Petitioner to submit all relevant details
in accordance with the provisions of Section 59 of the Act clearly providing
amount of subsidy received from State Government along with the next tariff
petition.
Progress Report on Unbundling
8.13 Even though the Government of Jammu & Kashmir, vide Govt. Order no. 264
PDD of 2012 dated 5th
September 2012, has ordered for unbundling of JKPDD
and setting up of one transmission company, two distribution companies (one
each for Jammu and Kashmir divisions) and one power trading company, the
JKPDD has failed to provide separate details of assets and costs for each
unbundled function of the Department. In this regards, the Commission is of the
view that unbundling is one of the major restructuring and reform measure as per
the Act and should be completed at the earliest.
8.14 Thus, the Commission directs the Petitioner to submit the progress report on
unbundling of the Department within three (3) months from the date of issue of
this Order.
Segregated asset details of Transmission and Distribution functions
8.15 The Commission directs the Petitioner to submit the segregated details of assets
of transmission and distribution functions along with the next tariff petition. The
progress made till date should be furnished in the month of August, 2014.
Capital expenditure and capitalization
8.16 The Petitioner as part of its Petition has not been able to submit the details of the
scheme wise capital investment plan and capitalization schedule as per the
formats prescribed in the JKSERC (Multi Year Distribution Tariff) Regulations,
2012. This action of the Petitioner goes against the concept of MYT regime.
Consequently, the Commission has approved the capital expenditure and
capitalization provisionally. The Commission accordingly directs the Petitioner
to submit the scheme wise details of Capital Expenditure Plan and Capitalization
Schedule as per the formats prescribed in the JKSERC (Multi Year Distribution
Tariff) Regulations, 2012 by September 2014.
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Setting up of Regulatory Cell
8.17 The Commission directs the Petitioner to set up a special cell to attend to
regulatory affairs and to monitor timely implementation of the directions issued
by the Commission.
Difference between revenue targets approved by JKSERC and revenue realised by
JKPDD-D
8.18 The Commission as part of its Tariff Order approves the revenue targets after
taking into account all the relevant factors. However there is a huge shortfall
between the revenue targets so approved by the Commission and the actual
revenue realization by the Utility. This is partly attributed to non issuance of
electricity bills and non collection of bills issued for energy consumed. The
Commission directs the Petitioner to undertake a comprehensive consumer
category wise analysis of such revenue shortfall each year and submit the same to
the Commission as part of the Tariff Petition indicating clearly the category wise
details of the arrears so that the same can be treated as opening balance to be
recovered over and above the revenue targets approved for the particular year.
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CHAPTER 9: TARIFF SCHEDULE FOR FY 2014-15
Schedule 1: Domestic Supply
Applicability
9.1 The Commission has fixed the applicability of the domestic tariff for supplies
pertaining to domestic premises, religious institutions, group housing societies,
orphanages, old-age and infirm homes, charitable institutions providing services
free of cost or on nominal charges, post offices at residences of villagers and
residential premises of architects, engineers, advocates, doctors, teachers, artists,
weavers, stitching and embroidery workers occupying not more than 20% of built
up area for respective professional purposes.
9.2 In addition, a separate Below Poverty Line (BPL) consumer category has been
created to provide relief to socio-economic backward consumers for consumption
upto 30 units/month. It should be noted that only those consumers will be included
in the BPL category who would submit a BPL certificate from the Competent
Authority of the State Government. In case consumption within this category
exceeds beyond 30 units/ month, the consumption over and above 30 units/ month
would be charged as per the applicable rates for domestic (metered) category in
accordance with the relevant consumption slab.
Character of Services
(a) Alternating current (A.C.) 50 Hz, 230 Volts, for Single-phase upto a load of
5 kW
(b) A.C, 50 Hz, three phase, 400 volts for load above 5 kW upto 100 kW (115
kVA)
Rate of Charge
Table 94: Approved Tariff for Domestic Supply
Description Approved Tariff for FY 2014-15
Below Poverty Line (Consumption upto 30
units/month)
Energy charges (Rs./KWh) 1.19
Fixed Charges (Rs./kW or part thereof / month) 5.00
Metered Consumers
Energy Charges for Metered Connection (Rs. / KWh)
upto 100 units/ month 1.54
101- 200 units /month 2.00
201 - 400 units /month 3.00
> 400 units /month 3.20
Minimum Charges for contracted load (Rs./month)
upto 1/4 kW Nil
above 1/4 kW upto 1/2 kW Nil
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Description Approved Tariff for FY 2014-15
above 1/2 kW upto 1 kW Nil
Above 1 kW for every 250 W,
or part thereof Nil
Fixed Charges for contracted load (Rs./kW or part
thereof / month)
For all units 5.00
Un-metered Consumers
Flat Rate (Rs. / month)
upto 1/4 kW 89
above 1/4 kW upto 1/2 kW 295
above 1/2 kW upto 3/4 kW 445
above 3/4 kW upto 1 kW 585
above 1 KW upto 1¼ kW 725
above 1¼ kW upto 1½ kW 865
above 1½ kW upto 1¾ kW 1005
above 1¾ kW upto 2 kW 1145
above 2 kW Rs. 1,145 + Rs.460 for every additional ¼
kW or part thereof above 2 kW
9.3 Group housing societies can avail single point power supply. The energy bill of a
housing society shall be divided by the number of houses in it, to determine the
consumption in each house.
9.4 If there are 10 houses in a society the consumption shall be charged in the
following manner: The first 1000 (100 x 10) units would be charged at Rs
1.54/unit; the next 1000 (100 x 10) units at Rs 2.00/unit; next 2000 (200 x 10) units
at Rs 3.00/unit and the remaining units at Rs 3.20/unit along with fixed charges for
entire load at Rs.5 per kW per month.
9.5 Any matter regarding supply to Group Housing societies should be as per the
Regulations laid down in JKSERC (Supply Code) Regulations, 2011;
“4.120. The consumer shall not supply any energy supplied to him by the Licensee
to another person or other premises unless he holds a suitable sanction or licence
for distribution and sale of energy granted by the Commission/State Government
or has been exempted by the Commission from holding license for sale.
4.121. In case of commercial, office or residential complexes including residential
complexes constructed by an employer for his employees, where power supply is
availed originally in the name of the builder or promoter of the complex and who
subsequently transfers the ownership of the complex, either entirely, to different
individuals or partly to different individuals retaining the balance for lease, the
power supply may be continued in the following methods.
i) The builder or promoter of the complex in whose name the supply continues, is
permitted to extend power supply to the individual owners of the flats etc. or to
the lessee by installing sub-meters and to collect the cost of consumption of
power from them on no-profit no-loss basis (i.e. sharing of expenses of
Order on APR FY 2013-14 and Determination of ARR and Tariff for JKPDD-D for FY 2014-15
JKSERC Page 134
consumption of electricity) and this shall not be treated as unauthorized
extension of supply or resale of energy.
ii) In case the promoter or builder of the complex does not wish to have any stake
in the complex after promoting the complex, the service connection originally
availed may be permitted to be transferred in the name of an Association or
Society that may be formed in the complex and registered and the service
agency so formed is permitted to extend supply to the individual owners of the
flats etc. or lessees by installing sub-meters and to collect the cost for
consumption of power from them on a no-profit no-loss basis (i.e. sharing of
expenses of consumption of electricity) and this shall not be treated as
unauthorized extension or resale of energy.
Provided that the tariff charged from ultimate consumers should under no
circumstance exceed that prescribed by the Commission for the respective tariff
category.
4.122 A panchayat/cooperative or a registered association of consumers may apply
for supply of electricity to a group of consumers at a single point. In such cases,
the body that has taken the connection shall be responsible for all payments of
electrical charges to the Licensee and for collection from the consumers. Provided
that the provisions of this clause shall not in any way affect the right of a person
residing in the housing unit sold or leased by such a Cooperative Group Housing
Society to demand supply of electricity directly from the distribution licensee of the
area. Provided that the tariff charged from ultimate consumers should under no
circumstance exceed that prescribed by the Commission for the respective tariff
category.”
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Schedule 2: Non-Domestic/ Commercial Supply
Applicability
9.6 This tariff category shall be applicable to the following: shops, showrooms,
business houses, offices, educational/ technical institutions, clubs, meeting halls,
places of public entertainment, hotels, cinemas, hospitals, dispensaries, clinics,
nursing homes, X-ray units, diagnostic centers, pathological labs, fisheries, aqua-
culture, sericulture, dairy, hatcheries, printing presses (other than those qualifying
to be charged under the LT industrial supply category), milk chilling centers,
poultry farms, cattle breeding farms, nurseries, plantations, mushroom growing,
carpenters and furniture makers, juice centers, hoardings and advertisement
services, typing institutes, internet cafes, STD/ ISD PCO’s, FAX/ photocopy shops,
tailoring shops, photo studios and color labs, laundries, cycle shops, compressors
for filling air, restaurants, eating establishments, guest houses, marriage gardens,
welding transformer and lathe machines for repair works and services, book
binders, petrol pumps and service stations, lifts and other appliances in shopping
centers and offices, tourist house boats, and similar other establishments.
9.7 In addition, any connection not covered under the other categories shall be billed
under this category. However, this would exclude connections pertaining to State/
Central Government or Defence services, which have been included in a separate
category.
Character of Services
(a) AC, 50 Hz, 230 Volts, Single-phase upto a load of 5 kW.
(b) AC, 50 Hz, three phase, 400 volts supply for load above 5 kW upto 100 kW
(115 kVA).
Rate of Charge
Table 95: Approved Tariff for Non Domestic/ Commercial Supply
Particulars Approved Tariff for FY 2014-15
Metered Non-Domestic Tariff
Energy Charges (Rs./KWh)
Single Phase
Upto 100 units/month 2.55
101 to 200 units/month 2.70
201 to 300 units/month 3.90
Above 300 units/month 4.20
Three Phase
For all units 4.55
Fixed Charges (Rs. / kW / month)
Load (in kW) to be rounded off to the next 1/2 kW for the purpose of application of Fixed Charges.
(Example: 0.25 kW to be charges as 0.5 kW and 1.2 kW to be charged as 1.5 kW and so on.)
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Particulars Approved Tariff for FY 2014-15
For connections with sanctioned load below 100kW (115 kVA) supplied and metered on HT, 5%
rebate on energy charges of Non-Domestic/Commercial Tariff shall be allowed.
Single Phase 40.00
Three Phase 95.00
Un-Metered Non-Domestic Tariff
Flat Rate Charges (Rs. / month)
Upto 1/4 kW 280
above 1/4 kW upto 1/2 kW 720
above 1/2 kW upto 1 kW 1,430
above 1 kW * 1,925
* and part thereof for every kW above 1 kW 1,925
9.8 Any matter regarding supply to Commercial Complexes with Single Point
Delivery/supply should be as per the Regulations laid down in JKSERC (Supply
Code) Regulations, 2011;
“4.120. The consumer shall not supply any energy supplied to him by the Licensee
to another person or other premises unless he holds a suitable sanction or licence
for distribution and sale of energy granted by the Commission/State Government
or has been exempted by the Commission from holding license for sale.
4.121. In case of commercial, office or residential complexes including residential
complexes constructed by an employer for his employees, where power supply is
availed originally in the name of the builder or promoter of the complex and who
subsequently transfers the ownership of the complex, either entirely, to different
individuals or partly to different individuals retaining the balance for lease, the
power supply may be continued in the following methods.
i) The builder or promoter of the complex in whose name the supply continues, is
permitted to extend power supply to the individual owners of the flats etc. or to
the lessee by installing sub-meters and to collect the cost of consumption of
power from them on no-profit no-loss basis (i.e. sharing of expenses of
consumption of electricity) and this shall not be treated as unauthorized
extension of supply or resale of energy.
ii) In case the promoter or builder of the complex does not wish to have any stake
in the complex after promoting the complex, the service connection originally
availed may be permitted to be transferred in the name of an Association or
Society that may be formed in the complex and registered and the service
agency so formed is permitted to extend supply to the individual owners of the
flats etc. or lessees by installing sub-meters and to collect the cost for
consumption of power from them on a no-profit no-loss basis (i.e. sharing of
expenses of consumption of electricity) and this shall not be treated as
unauthorized extension or resale of energy.
Provided that the tariff charged from ultimate consumers should under no
circumstance exceed that prescribed by the Commission for the respective tariff
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category.
4.122 A panchayat/cooperative or a registered association of consumers may apply
for supply of electricity to a group of consumers at a single point. In such cases,
the body that has taken the connection shall be responsible for all payments of
electrical charges to the Licensee and for collection from the consumers. Provided
that the provisions of this clause shall not in any way affect the right of a person
residing in the housing unit sold or leased by such a Cooperative Group Housing
Society to demand supply of electricity directly from the distribution licensee of the
area. Provided that the tariff charged from ultimate consumers should under no
circumstance exceed that prescribed by the Commission for the respective tariff
category.”
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Schedule 3: State/ Central Government Departments
Applicability
9.9 The Commission has fixed the applicability of the State/ Central Government
department category to all connections including educational/technical institutions,
taken by Departments of the State and the Central Governments, defence and para-
military forces excluding public sector enterprises/ undertakings.
9.10 This shall not include connections taken for agricultural purposes, water pumping
and street lighting by the State Government Departments for which tariffs provided
in the appropriate tariff schedules shall apply.
Character of Services
(a) AC, 50 Hz, 230 Volts; Single-phase upto a load of 5 kW
(b) AC, 50 Hz, three phase; 400 volts supply for sanctioned load above 5 kW
upto 100 kW (115 kVA)
(c) AC, 50 Hz, three phase; 11 kV supply for sanctioned load above 100 kW
(115 kVA) upto 1 MVA
(d) AC, 50 Hz, three phase; 33 kV and above supply for sanctioned load above
1 MVA
Rate of Charge
Table 96: Approved Tariff for State/ Central Government Departments
Particulars Approved Tariff for FY 2014-15
Energy Charges (Rs./ KWh) 6.30
11 kV Supply 2.5% rebate on energy charges
33 kV and above Supply 5.0% rebate on energy charges
Fixed Charges Rs./ kW
Load (in kW) to be rounded off to the next whole number for the purpose of application of Fixed
Charges.
For metered consumers 30.00
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Schedule 4: Agricultural Supply
Applicability
9.11 The Commission has fixed applicability of the agricultural tariff to agricultural
loads and lift irrigation connections including threshers. This is also applicable to
State Govt. lift irrigation and pumping loads in this category.
Character of Services
(a) AC, 50 Hz, 230 Volts, Single-phase upto a load of 5 kW (6.70 HP)
(b) AC, 50 Hz, three phase, 400 volts supply for sanctioned load upto 100 kW
(134 HP)
(c) AC, 50 Hz, three phase, 11kV supply for sanctioned load above 100 kW
(134 HP) upto 1 MVA
(d) AC,50 Hz, three phase, 33/66kV supply for sanctioned load above 1 MVA
Rate of Charge
Table 97: Approved Tariff for Agriculture Supply
Particulars Approved Tariff for FY 2014-15
Metered Tariff
Energy Charges (Rs./KWh) *
0 to 10 HP 0.60
11 to 20 HP 0.65
Above 20 HP 4.75
Minimum Charges for connected load (Rs./HP/Annum)
0 - 10 HP Nil
11 to 20 HP Nil
Above 20 HP Nil
Fixed Charges for connected load (Rs/HP/month)
0 - 10 HP 15.00
11 to 20 HP 20.00
Above 20 HP 40.00
* 2.5% & 5% rebate on Energy Charges for connection at 11 kV and 33 kV and above respectively.
Flat Rate Un-metered for connected load (Rs./HP month)
0 to 10 HP 185
11 to 20 HP 200
Above 20 HP 1,275
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Schedule 5: Public Street Lighting
Applicability
9.12 The tariffs for this category will be applicable to public street lighting established
and maintained by Corporations, Municipalities, Town Area/ Notified Area
Committees, other local bodies and agencies authorized by the State Government
to establish and maintain public street lighting.
Character of Services
(a) AC, 50 Hz, 230 Volts, Single-phase upto a load of 5 kW;
(b) AC, 50 Hz, three phase, 400 volts supply for load above 5 kW.
Rate of Charge
Table 98: Approved Tariff for Public Street Lighting
Particulars Approved Tariff for FY 2014-15
Metered Tariff
Energy Charge
Rs./ KWh 5.00
Fixed Charge
Load (in kW) to be rounded off to the next whole number for the purpose of application of Fixed Charges
Rs./ KWh (for metered consumers) 40.00
Un-metered Tariff
Rs./ kW/ month or any part thereof 1,350
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Schedule 6: LT Public Water Works
Applicability
9.13 The tariffs for this consumer category shall apply to water works and sewerages/
drainage installations established and maintained by Corporations, Municipalities,
Town Area/ Notified Area Committees, other local bodies and Government
agencies authorized by the State Government to establish and maintain public
water works/ sewerage installations.
Character of Services
(a) AC, 50 Hz, 230 Volts, Single-phase upto a load of 5 kW (6 kVA)
(b) AC, 50 Hz, three phase, 400 volts supply for sanctioned load upto 100 kW
Rate of Charge
Table 99: Approved Tariff for LT Public Water Works
Particulars Approved Tariff for FY 2014-15
Metered Tariff
Energy Charge
For all Units (Rs./ KWh) 5.55
Fixed Charges
Load (in kW) to be rounded off to the next whole number for the purpose of application of Fixed Charges
For metered consumers (Rs./ kW/ month) 45.00
Un-metered Charge
Rs. / kW /month 1,465
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Schedule 7: HT Public Water Works
Applicability
9.14 The tariffs for this consumer category shall apply to water works and sewerages/
drainage installations established and maintained by Corporations, Municipalities,
Town Area/ Notified Area Committees, other local bodies and Government
agencies authorized by the State Government to establish and maintain public
water works/ sewerage installations.
Character of Services
(a) AC, 50 Hz, three phase; 11 kV supply for load upto 1 MVA.
(b) AC, 50 Hz, three phase; 33 kV and above supply for sanctioned load above
1 MVA
Rate of Charge
Table 100: Approved Tariff for HT Public Water Works
Particulars Approved Tariff for FY 2014-15
Metered Consumers
11 kV Supply
Energy Charge (Rs./ KVAh) * 3.95
Demand Charge (Rs./ kVA/ Month) *^ 220
* For Connections above 100 kW metered on LT, Additional 5% Surcharge on Demand and Energy
Charges at 11 KV tariff shall be chargeable
^ Or part thereof on billing demand
33 kV and above Supply
Energy Charge (Rs./ KVAh) 3.75
Demand Charge (Rs./ kVA/ Month) ^ 210
^ Or part thereof on billing demand
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Schedule 8: LT Industrial Supply
Applicability
9.15 The Commission has decided that LT industrial supply shall be applicable to all
units registered with the Industries & Commerce Department, Government of J&K,
and covered under the Factories Act. The list of entities covered shall include
various industrial installations and workshops with manufacturing facilities, where
raw materials are converted to finished goods. This shall mean and include all
energy consumed in factory, offices, stores, canteen, compound lighting, etc. and
the consumption for residential use therein.
9.16 The Commission has introduced Separate category namely LTIS II in order to
provide relief to “Atta Chakkis, Rice huskers, Oil expellers, cotton grinning” in
rural and unorganized sector having load upto 15 HP (11.19 kW) . LTIS I would
include all LT industrial consumers except those covered under LTIS II.
Character of Services
(a) AC, 50 Hz, 230 Volts, single-phase upto a load of 5 kW.
(b) AC, 50 Hz, three phase, 400 volts supply for sanctioned load upto 100 kW
Rate of Charge
Table 101: Approved Tariff for LT Industrial Category
Particulars Approved Tariff for FY 2014-15
LTIS I
(for all metered consumers except those covered under LTIS II)
Energy Charges (Rs./KWh) * 3.00
Fixed Charges (Rs./kW/month) ^ 47
* For Connections with sanctioned load below 100 kW supplied and metered on HT, 5% rebate on
Energy Charges shall be allowed.
^ Load (in kW) to be rounded off to the next whole number for the purpose of application of Fixed
Charges.
LTIS II
(for all metered consumers and having load up to 15 HP
Energy Charges (Rs./KWh) * 3.00
Fixed Charges (Rs./kW/month) ^ 20
* For Connections with sanctioned load below 100 kW supplied and metered on HT, 5% rebate on
Energy Charges shall be allowed.
^ Load (in kW) to be rounded off to the next whole number for the purpose of application of Fixed
Charges.
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Schedule 9: HT Industrial Supply
Applicability
9.17 The Commission has decided that HT industrial supply shall be applicable to all
units registered with the Industries department, Government of J&K, and covered
under the Factories Act. This shall mean and include all energy consumed in
factory, offices, stores, canteen, compound lighting, etc. and residential use therein,
excluding power intensive industries.
Character of Services
(a) AC, 3 phase; 50 Hz on 11 KV with sanctioned load above 100 kW upto 1
MVA
(b) AC, 3 phase; 50 Hz, 33 KV and above for sanctioned load of 1 MVA and
above
Rate of Charge
Table 102: Approved Tariff for HT Industrial Category
Particulars Approved Tariff for FY 2014-15
11 kV Supply
Energy Charge (Rs./ KVAh) * 2.68
Demand Charge (Rs./ kVA/ Month) *^ 130
* For Connections with sanctioned load above 100 kW metered on LT, Additional 5% Surcharge on Demand
& Energy Charges at 11 KV tariff shall be chargeable;
^ Or part thereof on Billing Demand
33 kV Supply
Energy Charge (Rs./ KVAh)** 2.60
Demand Charge (Rs./ kVA/ month) ^ 130
** Rebate to Connections at higher voltages: For 66 kV – 1.5% on the Energy Charge for 33 kV Supply;
^ Or part thereof on Billing Demand
(a) The billing demand for any month shall be taken to be the higher of the actual maximum recorded
demand or 75% of the Contract Demand.
(b) The demand in excess of contracted load shall be billed in accordance with para nos. 10.10,
10.11 and 10.12 of the Chapter 10: Terms and Conditions of Tariff /Definitions of this Order.
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Schedule 10: HT Industrial Supply for Power Intensive Industries
Applicability
9.18 The Commission has decided that HT Industrial Supply for Power Intensive
Industries shall be applicable to all units registered with the Industries &
Commerce Department, Government of J&K, and covered under the Factories Act.
This category shall apply to HT consumers manufacturing any one of the following
products and/ or industries engaged in any one or more of the processes listed
below and/ or using induction/ arc furnaces. This shall mean and include all energy
consumed in factory, offices, stores, canteen, compound lighting, etc. and the
consumption for residential use therein.
(a) Calcium carbide
(b) Caustic soda
(c) Charge chrome
(d) Ferro manganese
(e) Ferro silicon
(f) Ferro alloys
(g) Potassium chlorate
(h) Silicon carbide
(i) Sodium chlorate
(j) Sodium metal
(k) Chlorates/ per chlorates
(l) Melting of metals and alloys
(m) Industries engaged in electro-chemical/ electro-thermal processes
(n) Industries using induction/ arc furnace
(o) In other cases, where the cost of power is more than 25% of the cost of the
product manufactured.
Character of Services
(a) AC, 3 phase; 50 Hz, 11 KV upto 1 MVA
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(b) AC, 3 phase; 50 Hz, 33 KV and above for load of 1 MVA and above
Rate of Charge
Table 103: Approved Tariff for HT Industrial Supply for Power Intensive Industries
Particulars Approved Tariff for FY 2014-15
11 kV Supply
Energy Charge (Rs./ KVAh) 3.21
Demand Charge (Rs./ kVA/ Month) ^ 195
^ Or part thereof on Billing Demand
33 kV Supply
Energy Charge (Rs./ KVAh) * 2.98
Demand Charge (Rs./ kVA/ month) ^ 190
* Rebate to Connections at higher voltages: For 66 kV – 1.5% on the Energy Charge for 33 kV Supply;
^ Or part thereof on Billing Demand
(a) The billing demand for any month shall be taken to be the higher of the actual maximum recorded
demand or 75% of the Contract Demand.
(b) The demand in excess of contracted load shall be billed in accordance with para nos. 10.10, 10.11
and 10.12 of the Chapter 10: Terms and Conditions of Tariff /Definitions of this Order.
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Schedule 11: General Purpose Bulk Supply
Applicability
9.19 This category contains all non-industrial consumers having mixed type of load
greater than 100 kW (115 kVA). This includes domestic consumers, offices,
educational/ technical institutions, religious institutions, residential colonies,
commercial establishments and other similar loads.
9.20 All connections having load of 100 kW or above and not covered in any other
categories shall be billed under tariffs applicable to this category. However, any
such connections belonging to State/ Central Governments, Defence and Para-
military forces shall not be considered in this category.
Character of Services
(a) AC, 3 phase; 50 Hz on 11 KV upto 1 MVA.
(b) AC, 3 phase; 50 Hz on 33 KV and above .for load of 1 MVA and above
Rate of Charge
Table 104: Approved Tariff for General Purpose Bulk Supply
Particulars Approved Tariff for FY 2014-15
11 kV Supply
Energy Charge (Rs./ KVAh) * 3.78
Demand Charge (Rs./ kVA/ Month) *^ 193
* For Connections above 100 kW metered on LT, Additional 5% Surcharge on Demand and Energy Charges at
11 KV tariff shall be chargeable
^ Or part thereof on Billing Demand
33 kV Supply
Energy Charge (Rs./ KVAh)** 3.62
Demand Charge (Rs./ kVA/ month) ^ 187
** Rebate to Connections at higher voltages: For 66 kV – 1.5% on the Energy Charge for 33 kV Supply;
^ Or part thereof on Billing Demand
(a) The billing demand for any month shall be taken to be the higher of the actual maximum recorded
demand or 75% of the Contract Demand.
(b) The demand in excess of contracted load shall be billed in accordance with para nos. 10.10, 10.11
and 10.12 of the Chapter 10: Terms and Conditions of Tariff /Definitions of this Order.
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Schedule 12: LT and HT Temporary Connections
Applicability
9.21 The Commission has fixed the applicability of this category to all loads of
temporary nature, such as exhibitions, touring talkies, circuses, fairs, marriages,
temporary agricultural loads, temporary supply for construction including civil
works by Government departments and other similar purposes.
Rate of Charge
9.22 The Commission has approved the tariff for temporary connections at 1.5 times the
applicable rates (on fixed/ demand and energy charges).
Time Period for Temporary Connection
9.23 Temporary connections shall be granted for a period of upto 3 months at a time.
However, if the period of temporary connection is extended beyond 3 months, the
tariff would be two times of the applicable fixed/demand and energy charges.
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CHAPTER 10: TERMS AND CONDITIONS OF TARIFF/
DEFINITIONS
10.1 The terms and conditions for application of tariff for the FY 2014-15 as approved
by the Commission are provided below.
Terms and Conditions of Tariff
10.2 The utility shall provide single phase LT connections upto a load of 5 kW, beyond
which all connections shall be three phase in nature.
10.3 The PDD-D may provide three phase connections to consumers with a load of less
than 5 kW on request from the consumer accompanying justification for the same.
Three phase tariff shall be applicable to all such connections.
Points of Supply
10.4 The tariff will be applicable to one point supply unless otherwise specified in the
agreement between JKPDD and the consumer.
Minimum Agreement Period
10.5 The minimum period for which JKPDD shall provide a permanent connection for
power supply to a consumer shall be two years. Any consumer applying for
permanent disconnection of the supply before the expiry of two years, shall pay to
the utility, guaranteed charges/ minimum charges/ demand charges for unexpired
period of the agreement. However this condition of paying minimum charges can
be relaxed for domestic and agriculture consumers.
Security Deposit
10.6 All matters regarding Security Deposits will be as per JKSERC (Security Deposit)
Regulation, 2008.
10.7 All the consumers shall at all times maintain with the utility / licensee an amount
equivalent to Electricity Charges for the period as noted hereunder, as security
against any default in payment towards the cost of electricity supplied / to be
supplied to the consumer during the agreed period of supply of energy:
(a) L.T. Agriculture Consumer – for three months;
(a) L.T. and H.T. Consumers – for two months;
(b) L.T. temporary consumers for the period for which electricity is required
subject to a minimum of three days based consumption @ ten units/kW/per
day of applied load at the prevailing tariff;
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(c) The State/ Central Government / local bodies consumers shall be exempt
from payment of the security deposit;
10.8 With the proviso that consumer shall have to pay additional security deposit at
prevailing tariff rate as and when the monthly billing cycle is replaced with bi-
monthly billing cycle.
Late payment surcharge
10.9 JKPDD-D shall levy a late payment surcharge @ 1.5% per month on the unpaid
(beyond due date) principal amount of energy charges, fixed/demand charges
and/or minimum charges as may be the case for authorized connections.
Example 1: In case no payment has been made before due date
- Amount payable on account of energy and fixed/demand charges by due
date = Rs. 1,000
- Due Date = 31st May 2013
- Actual paid by due date = Nil
- Amount payable after due date but by 30th
June 2013 = Rs. 1,015 (1000 +
15)
- Amount payable by 31st July 2013 = Rs. 1,030 (1000 + 15 + 15) and so on
(Note: Surcharge for the period beyond June 2013 would be computed on
the unpaid principal amount only)
Example 2: In case partial payment has been made before due date
- Amount payable on account of energy and fixed/demand charges by due
date = Rs. 1,000
- Due Date = 31st May 2013
- Actual paid by due date = 500
- Unpaid Amount payable after due date but by 30th
June 2013 = Rs. 507.5
(500 + 7.5)
- Amount payable by 31st July 2013 = Rs. 515 (500 + 7.5 + 7.5) and so on
(Note: Surcharge for the period beyond June 2013 would be computed on
the unpaid principal amount only)
Excess/ Unauthorized Load
10.10 Any consumer having energy meter with Maximum Demand Indicators (MDI)
installed, found to have actual load drawn greater than the Contracted demand shall
be levied fixed/demand charges for the excess load, at 2 times the normal rate. The
energy charges for consumption proportionate to the excess demand shall also be
billed at 2 times the normal rate. Provided that in cases no MDI is installed, the
excess load shall be billed as per Regulation 6.27 of JKSERC (Supply Code)
Regulations, 2011.
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Example:
(a) For consumers where fixed charges on the basis of contracted load/
demand have been specified:
- Contracted load = 30 kW, Maximum Demand = 43 kW, Excess Demand
= 13 kW (43-13)
- Recorded consumption for month = 10,320 KWh
- Consumption corresponding to contracted load =(10,320 / 43 * 30) =
7,200 KWh;
- Consumption corresponding to excess demand = (10,320 – 7,200) =
3,120 KWh
- Normal Fixed Charge Rate = Rs. 47/kW/month, Normal Energy Charge
rate = Rs.3.00/KWh
- Fixed Charges for contracted load = (30 * 47) = Rs. 1,410;
- Fixed Charges for excess load =(13 * 47 * 2) = Rs. 1,222;
- Total Fixed Charges = (1,410 + 1,222) = Rs. 2,632
- Energy Charges for consumption corresponding to contracted load =
(7,200 * 3) = Rs. 21,600;
- Energy Charges for consumption corresponding to excess load =
(3,120 * 3* 2) = Rs. 18,720;
- Total Energy Charges =(21,600 + 18,720) = Rs. 40,320
(b) For industrial consumers billed on billable demand:
- Contracted demand = 500 kVA, Maximum Demand = 800 kVA, Excess
Demand = 300 kVA (800-500)
- Recorded consumption for month = 3,26,400 KVAh
- Consumption corresponding to contracted demand = (3,26,400 * 500/
800) = 2,04,000 KVAh;
- Consumption corresponding to excess demand = (3,26,400 – 2,04,000)
= 1,22,400 KVAh
- Normal Demand Charge Rate = Rs. 130/kVA/month, Normal Energy
Charge rate = Rs.2.60/KVAh
- Fixed Charges for contracted demand = (500 * 130) = Rs. 65,000;
- Fixed Charges for excess demand = (300 * 130 * 2) = Rs. 78,000;
- Total Fixed Charges = (65,000 + 78,000) = Rs. 1,43,000
- Energy Charges for consumption corresponding to contracted demand
=(2,04,000 * 2.60) = Rs. 5,30,400;
- Energy Charges for consumption corresponding to excess demand =
(1,22,400 * 2.60 * 2) = Rs. 6,36,480;
- Total Energy Charges = (5,30,400 + 6,36,480) = Rs. 11,66,880
10.11 For LT consumers and HT consumers without Trivector Electronic meters extra
billing shall be done for previous six months and will be continued till the excess
Connected Load is removed or regularized.
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10.12 Connection to such defaulting consumers shall be disconnected immediately,
which will be reconnected only after the unauthorized load is removed and a test
report is submitted to JKPDD. It can also be reconnected after the excess load is
regularized by revising the completion of revised agreement, submission of test
report and payment of prescribed charges. JKPDD shall allow the regularization of
excess load based on the conditions of the distribution system. In absence of
suitable conditions, the consumer shall be required to disconnect the excess load
within fifteen days.
Electricity Duty
10.13 The tariffs are exclusive of Electricity Duty (ED) or any other taxes levied by the
Government. The ED and any other levy shall be charged extra and remitted to the
Government separately, based on the actual payment from consumers.
Power Factor Control
10.14 All consumers having aggregate inductive load greater than 3 HP and above
(except domestic and street lights and such consumers where KVAh tariff has been
introduced), shall install capacitors of required KVAR rating provided in the
following table:
Table 105: Ratings of capacitors for inductive load
Rating of individual Inductive Load in HP kVAR rating of LT capacitors
3 1
5 2
7.5 3
10 4
15 5
20 7
25 9
30 10
40 12.5
50 15
60 17.5
75 20
90 25
100 25
120 30
130 35
10.15 All such consumers shall be levied a surcharge at 10% on the energy charge
(metered or flat), till they have installed the required capacitors.
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10.16 For LT industrial/ non-domestic connections having welding transformers with
total capacity greater than 25% of the total Connected Load, an extra surcharge of
Rs. 3/ kVA/ month shall be levied until capacitors of required capacity are
installed.
10.17 The utility shall not release any new LT connections having aggregate inductive
load greater than 5 HP/ kVA (except domestic and street light) unless the
capacitors of suitable rating are installed.
Irregular Power Supply
10.18 Wherever the utility is unable to supply power to the entire area / locality fed by a
particular substation for a continuous period of 15 days or more, no electricity
charges will be payable by the affected consumers for the period for which the
power remains off continuously.
10.19 The areas where the power supply is less than 12 hours a day continuously for a
period of thirty days, the minimum charges/ fixed charges/ demand charges shall
be charged proportionately for the actual period of supply.
Government Employees moving with Darbar
10.20 Government employees moving between Jammu and Srinagar along with Darbar
and occupying Government accommodation shall be granted electric connection
for a period of six months. On expiry of six months, the utility will disconnect the
installation immediately and no charges will be levied for the period the
installation remains disconnected. All such installations shall be deemed to be
permanent connections for determination of tariff.
Stopped / Defective meters
10.21 In case of defective/stuck/stopped/burnt meter, the consumer shall be billed on the
basis of average consumption of the past three billing cycles immediately
preceding the date of the meter being found/reported defective. These charges shall
be leviable for a maximum period of three months only during which time the
Licensee is expected to have replaced the defective meter.
10.22 In case, the Maximum Demand Indicator (MDI) of the meter at the consumer’s
installation is found to be faulty or not recording at all (unless tampered), the
demand charges shall be calculated based on maximum demand during
corresponding months/billing cycle of previous year, when the meter was
functional and recording correctly. In case, the recorded MDI of corresponding
month/billing cycle of past year is also not available, the average maximum
demand as available for lesser period shall be considered.
Charges for Dishonoured Cheques
10.23 A consumer, whose cheque has been dishonoured, shall have to make payments
either in cash or demand draft.
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10.24 JKPDD shall charge an interest @ 2.5% per month on the unpaid amount from the
due date of payment till the bill amount is entirely paid.
Resale of Energy
10.25 Resale of power should be as per the Provisions in the JKSERC (Supply Code)
Regulations, 2011.
“4.120. The consumer shall not supply any energy supplied to him by the Licensee
to another person or other premises unless he holds a suitable sanction or licence
for distribution and sale of energy granted by the Commission/State Government
or has been exempted by the Commission from holding license for sale.
4.121. In case of commercial, office or residential complexes including residential
complexes constructed by an employer for his employees, where power supply is
availed originally in the name of the builder or promoter of the complex and who
subsequently transfers the ownership of the complex, either entirely, to different
individuals or partly to different individuals retaining the balance for lease, the
power supply may be continued in the following methods.
i) The builder or promoter of the complex in whose name the supply continues, is
permitted to extend power supply to the individual owners of the flats etc. or to
the lessee by installing sub-meters and to collect the cost of consumption of
power from them on no-profit no-loss basis (i.e. sharing of expenses of
consumption of electricity) and this shall not be treated as unauthorized
extension of supply or resale of energy.
ii) In case the promoter or builder of the complex does not wish to have any stake
in the complex after promoting the complex, the service connection originally
availed may be permitted to be transferred in the name of an Association or
Society that may be formed in the complex and registered and the service
agency so formed is permitted to extend supply to the individual owners of the
flats etc. or lessees by installing sub-meters and to collect the cost for
consumption of power from them on a no-profit no-loss basis (i.e. sharing of
expenses of consumption of electricity) and this shall not be treated as
unauthorized extension or resale of energy.
Provided that the tariff charged from ultimate consumers should under no
circumstance exceed that prescribed by the Commission for the respective tariff
category.
4.122 A panchayat/cooperative or a registered association of consumers may apply
for supply of electricity to a group of consumers at a single point. In such cases,
the body that has taken the connection shall be responsible for all payments of
electrical charges to the Licensee and for collection from the consumers. Provided
that the provisions of this clause shall not in any way affect the right of a person
residing in the housing unit sold or leased by such a Cooperative Group Housing
Society to demand supply of electricity directly from the distribution licensee of the
area. Provided that the tariff charged from ultimate consumers should under no
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circumstance exceed that prescribed by the Commission for the respective tariff
category.”
Applicability of Tariff
10.26 In case of any dispute between the utility and the consumers regarding the
applicability of Tariff, the decision of the Commission shall be final.
Contradiction to the Agreement
10.27 All conditions prescribed here in shall be applicable to the consumers,
notwithstanding, the provisions if any, in the agreement entered by the consumers
with the licensee, being to the contrary.
Rebate for Non-Lighting Use of Solar Energy
10.28 During winter months very high consumption of electricity takes place during the
morning hours resulting in peaking of demand in morning in addition to the normal
peaking witnessed in the evening hours. Climatic conditions in the State are such
that hot water is required by domestic as well as commercial consumers and it
appears that one of the reasons for this peaking demand in the morning during
winter months is use of water heating appliances like geysers and immersion rods
etc. These heating appliances are heavy guzzlers of electricity.
10.29 This requirement of consumers is real and cannot be curbed or discouraged beyond
a point. Therefore, for the sake of proper grid management it is essential that
consumers should be nudged and encouraged to opt for alternative methods to meet
their water heating and cooling requirements. Solar Water Heaters and/ or Solar
Cookers offer an excellent alternative to electrical water heating systems and can
help in a big way in reducing the demand particularly during morning hours. The
weather conditions in the State are conducive to tapping solar energy for this
purpose. Responsible and progressive consumers are already using such devices as
it also results in substantial reduction in their own energy bills. Use of Solar
Heating is, thus, a win-win situation for consumers as well as the utility.
10.30 In order to encourage consumers to switch over to solar water heating systems, the
Commission approves a monthly rebate of Rs.150.00 for all metered consumers
who have installed such solar heating systems with a minimum capacity of
100 litres for meeting their requirement of hot water. To avail this rebate the
consumer will be required to give the documentary proof of having obtained
JAKEDA or purchase from a registered dealer such a system and an affidavit to the
effect that such a system has been installed on his premises and is being used
regularly to meet such heating requirements.
10.31 This declaration will be verified by Licensee’s meter representative. In case, any
such declaration is found to be false, the licensee apart from taking appropriate
legal action against such consumers would be entitled to recover the entire rebate
allowed to such consumers with 100% penalty.
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Definitions
Connected Load
10.32 The Connected Load shall mean the sum of the rated capacities in kW/HP of all
energy consuming apparatus including portable apparatus duly wired and
connected to the power supply system in the consumer’s premises. However, this
shall not include the load of extension plug sockets, stand-by or spare energy
consuming apparatus installed, through change over switch, which cannot be
operated simultaneously and any other load exclusively meant for firefighting
purposes.
10.33 In case of domestic consumers load of geysers plus heaters or of air conditioners
without heaters whichever is higher is to be considered.
10.34 Any equipment which is under installation and not connected electrically,
equipment stored in warehouse/showrooms either as spare or for sale is not to be
considered as part of the Connected Load.
Sanctioned Load
10.35 Sanctioned Load: shall mean load for which JKPDD has agreed to supply from
time to time subject to the governing terms and conditions. The total Connected
Load is required to be sanctioned by the competent authority.
Contract Demand
10.36 Contract Demand shall mean the maximum demand for which the consumer has
entered into an agreement with the utility. The contract demand cannot be reduced
to less than 60% of the sanctioned connected demand.
Maximum Demand
10.37 Maximum Demand for any month shall mean the highest average load measured in
kilovolt amperes during any consecutive 30 minutes period of the month.
Demand Charges
10.38 Demand Charges shall mean the amount chargeable based upon the billing demand
as defined in the relevant tariff schedule.
Average Power Factor
10.39 Average Power Factor: shall mean the average energy factor and shall be taken as
the ratio of the kilo-watt-hours (KWh) to the kilo-volt-ampere hours (KVAh)
supplied during any period.
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CHAPTER 11: SCHEDULE OF MISCELLANEOUS CHARGES
Table 106: Approved Schedule of Miscellaneous Charges for FY 2014-15
Sl.
No Description Units
Existing
charges
Proposed
by the
Petitioner
Approved
by the
Commission
FY 2014-15
1 For single phase and three phase
connection upto 5 kW
1.a Changing Meter Board in same premises. Rs 60 300 80
1.b Changing Meter at Consumers request in
same premises. Rs 60 300 80
1.c Resealing PDDs cut-out in Consumers
premises. Rs 20 200 25
2 Re –sealing of Meters, Maximum Demand
Indicators in Consumers premises
2.a Single Phase LT Connection. Rs 50 200 100
2.b Three phase LT Connection Rs 70 400 150
2.c HT Connection Rs 700 1500 850
3 Meter Testing charge at Consumers
request
3.a Single phase LT Meter. Rs 50 250 60
3.b Three phase 4W/3W Meter without CT. Rs 85 350 100
3.c Three phase 4W/3W Meter with CT Rs 300 1000 350
3.d LT CT Meter Rs 120 1000 200
3.e HT Meter along with metering equipment
(CT/PT). Rs 1200 4000 1200
4 Special meter reading
4.a LT Connection Rs 25 500 30
4.b HT Connection Rs 220 500 250
5 Replacement of burnt Meter (if burnt due to
Consumers fault) Rs
Cost of
Meter+15%
supervision
charges
Cost of
Meter+15%
supervision
charges
Cost of
Meter+15%
supervision
charges
6 Fuse Off call charges-Replacement
6.a PDD’s cut out fuse Rs 20 200 25
6.b LT Consumers fuse Rs 20 200 25
7 Replacement of missing Meter card Rs/Card 15 500 15
8 Replacement of broken glass of Meter Rs/Glass 35 500 40
9 Reconnection/disconnection charges
9.a LT Consumers Rs 25 300 50
9.b HT Consumers Rs 170 1000 250
10 Rechecking of installation on request of
Consumer
10.a Single phase Rs 75 500 100
10.b Three phase Rs 250 500 250
11 Re-rating of equipment Rs/
Equipment 120 120 120
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Sl.
No Description Units
Existing
charges
Proposed
by the
Petitioner
Approved
by the
Commission
FY 2014-15
12
Supervision charge for Service Connection(if service line laid by Consumer
through licensed Contractor)
12.a Single phase LT connection Rs 175 1500 200
12.b Three phase LT connection Rs 400 1500 450
12.c Loop LT connection Rs 95 1500 120
13 Parallel Operation charge for availing Grid
support by CPP
Rs/kVA
per month
on the
installed
capacity
of CPP
18
As per
JKSERC
Regulations
As per
JKSERC
Regulations
14 Shifting of connection Rs
Actual
material
cost+15%
supervision
charge
Actual
material
cost+15%
supervision
charge
Actual
material
cost+15%
supervision
charge
15 Hiring of Utility’s plant and equipment
15.a For initial hire agreement period Rs
1% pm on
current
schedule of
rates
2.5% pm
on current
schedule of
rates
1% pm on
current
schedule of
rates
15.b For subsequent period of hire agreement Rs Twice of
15.a
Twice of
15.a Twice of 15.a
15.c For LT consumers(more than 100 HP)
converting to HT Rs
Same as
15.a & 15.b
Same as
15.a & 15.b
Same as 15.a
& 15.b
16 Transfer of Name
16.a LT Rs 100 300 120
16.b HT Rs 600 600 600
17 Booklet for HT/LT Tariff Rs 20 150 25
18 Connection/disconnection charges for
temporary connection
18.a LT temporary connection Rs 120 300 150
18.b HT temporary connection Rs 600 1000 700
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ANNEXURES
Annexure 1: List of participants in State Advisory Committee Meeting
List of participants of 2nd
meeting of 2014 of the State Advisory Committee held on
22nd
April, 2014 in the meeting hall of JKSERC at Jammu under the chairmanship of
Sh. Basharat Ahmad Dhar, Chairman JKSERC has been summarised in following table.
Table 1: List of participants in SAC meeting
S.
No. Name Department/ Organization
Hon’ble Members of JKSERC
1 Sh. D.S.Pawar Member (T)
2 Sh. G.M.Khan Member (F)
Members of the SAC
3 Sh. Baseer Khan I.A.S Secretary, CAPD
4 Dr. S.S. Jamwal Director, Agriculture, Jammu
5 Dr. Aijaz Ahmed Professor, Elec. Engg Dept., NIT Srinagar
6 Sh. M.L. Raina,KAS Dy. Transport Commissioner (Rep. Transport Commissioner)
7 Major General (Ret.) Goverdhan
Singh Jamwal President, J&K Ex-serviceman League
8 Sh. Sheikh Ashiq Ahmad President, KCCI
9 Sh. Y.V. Sharma President, CCI, Jammu
10 Sh. Annil Suri Chairman, Federation of Industries, Jammu, President, BBIA
11 Sh. Vikram Gour President, SCPC, Consumer Welfare Association
12 Sh. Syed Afaq Qadri Sr. Vice President, FCIK (representing Sh. Mohd. Ashraf Mir,
President FCIK)
Special Invitees
13 Sh. M.A. Kakroo I.A.S. Managing Director, JKSPDC
14 Sh. H.S. Gupta Retd DC(P)/Ex-Consultant JKSERC
Officers of JKSERC
15 Sh. R K Seli Technical Consultant, JKSERC
16 Sh. Abdul Hamid Secretary, JKSERC
17 Sh. V.K Sarngal Suptt. Engineer, JKSERC
18 Smt. Villy Kaul Dy. Secretary(Law), JKSERC
19 Sh. Ram Krishan Accounts Officer, JKSERC
20 Sh. Paavan Bhargava Consultant (PwC)
Officers of JKPDD
21 Sh. Asgar Ali Development Commissioner(Power),JKPDD
22 Sh. Ajay Gupta C.E.,S&O. Jammu, JKPDD
23 Smt. Shehnaz Goni C.E, M&RE, Jammu, JKPDD
24 Sh. Khurshid Ahmed Badoo C.E.,Commercial and Survey Wing, JKPDD
25 Sh. B.A. Khan C.E., EM&RE wing, JKPDD
26 Sh. Ravi Chanyal C.E., P&D, JKPDD
27 Sh. B.A. Dar Tech. Officer to DCP
28 Sh. Umesh Parihar Executive Engineer, SLDC, Jammu
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S.
No. Name Department/ Organization
29 Sh. Rakesh Sharma AEE, DCP Office
30 Sh. Vaneet Gupta AEE, ITC and Billing
31 Sh. Azhar Vakil AEE, DCP Office
32 Sh. M. Ramzan AE, DCP Office
Officers of JKSPDC
33 Sh. Iftikar A Kakroo General Manager(Civil), JKSPDC
Note: Some names and their spellings may vary from the actual details since the attendance sheets were
filled by hand and some of the handwritings were not legible.
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Annexure 2: List of stakeholders who responded to the public notice
Table 1: List of objectors
S.No. Objector
1. Annapurna Laminators Pvt. Ltd., Lane No.4, SIDCO Industrial Complex, Bari Brahmana, Jammu
2. Association of Industries ,ASSI Bhawan, 52-A, Phase-I, Industrial Area, Gangyal, Jammu
3. Anil Suri, Bari Brahmana Industries Association(Regd.)
4. Vikrant Kuthiala, Chairman, On behalf of PHD Chamber of Commerce, J&K Committee, Jammu.
5. Ram Kumar Suryawanshi, Commander Works Engineer, MES, Udhampur
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Annexure 3: List of participants in Public Hearings
Table 1: Participants at Hearing held on 24th
May 2014 at IMPA, Mulana Azad Road, Srinagar
S.No. Name of the Officers/ officials/ stakeholders Designation
JKSERC
1 Sh. Basharat Ahmad Dhar Hon'ble Chairman, JKSERC
2 Sh. D.S. Pawar Hon'ble Member (T), JKSERC
3 Sh. G.M. Khan Hon'ble Member (T), JKSERC
4 Sh. Abdul Hamid Secretary, JKSERC
5 Sh. V. K. Sarngal Supdtt. Engineer, JKSERC
6 Smt. Villy Kaul Dy. Secretary Law, JKSERC
7 Sh. Ram Krishan Accounts Officer, JKSERC
8 Sh. Abdul Hamid Baba Pvt. Secretary to HCM, JKSERC
9 Sh. Paavan Bhargava Consultant (PwC)
Public Representatives
10 Sh. Shakeel Qalander Member, KCSDS
11 Sh. Afaq Qadri Sr. Vice President, FCIK
12 Sh. Rasool Dar Local Representative
13 Gh. Mohidin Paul Local Representative
14 Sh. Mohd. Shafi Dar Local Representative
15 Sh. Ali Mohd. Rangrez Local Representative
16 Sh. Javeed Ahmad Local Representative
Officers from JKSPDC
17 Sh. M.A.Kakroo, IAS Managing Director, JKSPDC
18 Sh. I.A.Kakroo G.M, JKSPDC
Officers from JKPDD
19 Sh. Asgar Ali Development Commissioner (Power), JKPDD
20 Sh. B.A. Khan Chief Engineer, JKPDD
21 Sh. Ajay Gupta Chief Engineer, JKPDD
22 Sh. Ravi Chanyal Chief Engineer, JKPDD
23 Sh. Showkat Banday Supdtt. Engineer, JKPDD
24 Sh. S.K. Zutshi Supdtt. Engineer, JKPDD
25 Sh. Nasib Singh Supdtt. Engineer, JKPDD
26 Sh. Fayaz Andvab Supdtt. Engineer, JKPDD
27 Sh. Mohd. Yousaf Baba Executive Engineer, JKPDD
28 Sh. Ajaz Ahmad Khan Executive Engineer, JKPDD
29 Sh. Arshad Hussain Reshi Executive Engineer, JKPDD
30 Sh. Manzoor Ahmad Zargar Executive Engineer, JKPDD
31 Sh. B.S. Jaggi Executive Engineer, JKPDD
32 Sh. Javed Y. Dar Executive Engineer, JKPDD
33 Sh. Hashmat Qazi Executive Engineer, JKPDD
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S.No. Name of the Officers/ officials/ stakeholders Designation
34 Sh. Ali Mohd. Rather Executive Engineer, JKPDD
35 Sh. M.K.Akeny Executive Engineer, JKPDD
36 Sh. Bashir Ahmad Dar TO to DCP, JKPDD
37 Sh. S. Ghani A.E.E, JKPDD
38 Sh. Azhar Vakil A.E.E, JKPDD
39 Sh. Azhar Yasin J.E., JKPDD
; Note: Some names and their spellings may vary from the actual details since the attendance sheets were
filled by hand and some of the handwritings were not legible.
Table 2: Participants at Hearing held on 29th
May, 2014 at PWD Guest House, Gandhinagar, Jammu
S.No. Name of the Officers/ officials/stakeholders Designation
JKSERC
1 Sh. Basharat Ahmad Dhar Hon'ble Chairman, JKSERC
2 Sh. D.S Pawar Hon'ble Member (T), JKSERC
3 Sh. G.M. Khan Hon'ble Member (F), JKSERC
4 Sh. Abdul Hamid Secretary, JKSERC
5 Sh. V.K. Sarngal Supdtt. Engineer, JKSERC
6 Smt. Villy Kaul Dy. Secretary Law, JKSERC
7 Sh. R.K. Sharma Accounts Officer, JKSERC
8 Sh. Paavan Bhargava Consultant (PwC)
9 Sh. Sunil Bakshi Draftsman, JKSERC
Public Representatives
10 Sh. R.K Suryawanshi Supdtt. Engineer, MES (CEW)
11 Sh. Lt. Col Rajesh Dwivedi GE (Utilities) Udhampur
12 Sh. Annil Suri President, BBIA
13 Sh. Lalit Mahajan Gen. Secretary, BBIA
14 Sh. Virendra Jain General Secretary, AI Gangyal
15 Sh. Devinder Mahajan M.D., Annapurna Laminators
16 Sh. Vikrant Kuthiala Chairman, JKPHD CCI
17 Sh. Ravi Mahajan Representative, Hotel Bar and Restaurant
Association
18 Sh. Sham Lal Langer Sr. Vice President, CCI, Jammu
19 Sh. Kuldip Wahi President, Jammu Hotel and Restaurant
Association
20 Sh. Aditya Gupta Advocate
21 Sh. Chander Vadan Company Secretary, BBIA
22 Sh. Inderjeet Khajuria President, AJHLA
Officers from JKPDD
23 Sh. Asgar Ali Development Commissioner (Power), JKPDD
24 Sh. Ajay Gupta Chief Engineer, JKPDD
25 Smt. Shahnaz Goni Chief Engineer, JKPDD
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S.No. Name of the Officers/ officials/stakeholders Designation
26 Sh. K.A Badoo Chief Engineer, JKPDD
27 Sh. Mustafa Aga Supdtt. Engineer, JKPDD
28 Sh. Nasib Singh Supdtt. Engineer, JKPDD
29 Sh. K.K.Raina Supdtt. Engineer, JKPDD
30 Sh. Ashwani Kumar Gupta Supdtt. Engineer, JKPDD
31 Sh. Sudhir Gupta Supdtt. Engineer, JKPDD
32 Sh. Sudhir Gupta Executive Engineer, JKPDD
33 Sh. Gurmeet Singh Executive Engineer, JKPDD
34 Sh. Shiv Dev Singh Executive Engineer, JKPDD
35 Sh. A.K. Chhibber Executive Engineer, JKPDD
36 Sh. Umesh Parihar Executive Engineer, JKPDD
37 Sh. B.A. Dar TO to DCP, JKPDD
38 Sh. Rohit Bhagotra A.E.E, JKPDD
39 Sh. Rakesh Sharma A.E.E, JKPDD
40 Sh. Azhar Vakil A.E.E, JKPDD
41 Sh. Anil Dhar A.E, JKPDD
42 Sh. Sanjeev Datta J.E, JKPDD
Note: Some names and their spellings may vary from the actual details since the attendance sheets were
filled by hand and some of the handwritings were not legible.